Which of the following scenarios is an exception to the general rule that a perfected security interest follows collateral?

Study for the Secured Transactions Bar Exam. Master secured transactions concepts with flashcards and multiple-choice questions, each with hints and explanations. Get exam-ready!

The scenario where inventory sold in the ordinary course of the debtor's business represents an exception to the general rule that a perfected security interest follows collateral is accurate because of the provisions outlined in the Uniform Commercial Code (UCC).

Under the UCC, when inventory is sold in the ordinary course of business, the security interest in that inventory is not retained by the secured party. A buyer who purchases that inventory in good faith and without knowledge of any security interest obtains the inventory free of that security interest. This is designed to facilitate commerce and encourage trust among buyers and sellers. It allows businesses to sell inventory freely without the risk of liability for existing security interests, promoting fluidity in business transactions.

In contrast, the other scenarios listed do not align with the idea of an exception to the perfected security interest's following of collateral. A secured creditor's failure to file does not create an exception but rather indicates that the security interest may not be perfected. Collateral being sent internationally may involve different legal considerations, but it does not negate the general principle of a perfected interest following the collateral. Lastly, the dissolution of a debtor's business does not extinguish the security interest either; it simply may lead to different enforcement procedures for the secured party regarding the debtor's assets

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