Acorn Marina, Inc. sells and services boat motors. On April 1, 1989, Acorn financed the purchase of its entire inventory with GAC Finance Company. GAC required Acorn to execute a security agreement and financing statement covering the inventory and proceeds of sale. On April 14, 1989, GAC properly filed the financing statement pursuant to the UCC Secured Transactions Article. On April 27, 1989, Acorn sold one of the motors to Wilks for use in his charter business. Wilks, who had once worked for Acorn, knew that Acorn regularly financed its inventory with GAC. Acorn has defaulted on its obligations to GAC. The motor purchased by Wilks is A. Subject to the GAC security interest because Wilks should have known that GAC financed the inventory purchased by Acorn. B. Subject to the GAC security interest because Wilks purchased the motor for a commercial use. C. Not subject to the GAC security interest because Wilks is regarded as a buyer in the ordinary course of Acorn's business. D. Not subject to the GAC security interest because GAC failed to file the financing statement until more than 10 days after April 1, 1989.

Acorn Marina, Inc. sells and services boat motors. On April 1, 1989, Acorn financed the purchase of its entire inventory with GAC Finance Company. GAC required Acorn to execute a security agreement and financing statement covering the inventory and proceeds of sale. On April 14, 1989, GAC properly filed the financing statement pursuant to the UCC Secured Transactions Article. On April 27, 1989, Acorn sold one of the motors to Wilks for use in his charter business. Wilks, who had once worked for Acorn, knew that Acorn regularly financed its inventory with GAC. Acorn has defaulted on its obligations to GAC. The motor purchased by Wilks is A. Subject to the GAC security interest because Wilks should have known that GAC financed the inventory purchased by Acorn. B. Subject to the GAC security interest because Wilks purchased the motor for a commercial use. C. Not subject to the GAC security interest because Wilks is regarded as a buyer in the ordinary course of Acorn's business. D. Not subject to the GAC security interest because GAC failed to file the financing statement until more than 10 days after April 1, 1989.

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