Rhonda Purchases a Refrigerator from AA Appliance Store

Rhonda purchases a refrigerator from AA Appliance Store.She store sells the refrigerator to her on credit.A few months later,Rhonda decides to move in with a friend and sells the refrigerator to Sally for $50.She also stops making payments on the refrigerator.When a representative from AA Appliance Store calls Rhonda,she tells them to get lost,that she has no money,and that the refrigerator is at Sally's house.The refrigerator is now worth less than Rhonda owes on it.Which of the following is true regarding the store's rights,if any,against Sally?

A) Because the sale to Rhonda created a purchase-money security interest,the store may repossess the refrigerator from Sally.
B) The store may only repossess the refrigerator from Sally if the store filed a financing statement reflecting its interest.
C) The store may not repossess the refrigerator from Sally under any circumstances because it is a consumer good.
D) The store may only repossess the refrigerator from Sally if it can be established that Sally knew that Rhonda owed money on it.

Correct Answer:

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