Question
Grimes purchased a new Dodge car from Hornish, a franchised Dodge dealer. The sale was made in the ordinary course of Hornishs business. Grimes paid
Grimes purchased a new Dodge car from Hornish, a franchised Dodge dealer. The sale was made in the ordinary course of Hornishs business. Grimes paid Hornish the purchase price of the car at the time of the sale. Hornish had borrowed money from Sterling Acceptance and had given it a perfected security interest in its inventory, including the car Grimes bought. Hornish defaulted on its loan to Sterling and Sterling then tried to recover the Dodge from Grimes. Was the car Grimes bought from Hornish still subject to Sterling Acceptances security interest?
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