Antigo Co-Op Credit Union v. Miller

The principal issue presented on this appeal is whether a buyer in the ordinary course of business takes free of a security interest when the secured party did not know that the seller was in the business of selling goods of the kind which constituted the collateral. We conclude that a buyer under those circumstances takes free of the security interest even though that security interest is perfected by proper execution and filing of a financing statement.

An important question to be resolved under the facts of this case is whether the buyer, James L. Miller, purchased the horse trailer from…