A buyer can take free of an unperfected security interest if which of the following is true?

The correct choice indicates that a buyer can take free of an unperfected security interest if they provide value and are unaware of the existing security interest. Under the Uniform Commercial Code (UCC), this rule applies because an unperfected security interest does not have priority over the rights of a buyer who is acting in good faith and without knowledge of the security interest at the time of the purchase.

When a buyer gives value for goods, they are making a significant commitment by entering into a transaction. If they do so without knowing about any encumbrances or claims, they are protected from prior unperfected interests that the seller may have. This provision promotes the free transfer of goods and encourages commercial transactions, ensuring that buyers can trust that they are acquiring clear title without unexpected complications.

In contrast to this correct answer, the other choices present scenarios that do not offer the same level of protection for the buyer under UCC principles. For example, receiving goods without paying (the second choice) does not constitute giving value, which is essential for the protection from unperfected security interests. Purchasing goods on credit (the third choice) involves a financial commitment but does not guarantee protection if the buyer is aware of the security interest. Lastly, knowing about the