Which category does consumer goods fall under?

Consumer goods fall under the category of tangible things used for personal or household purposes. This classification is significant within secured transactions because it distinguishes consumer goods from other categories of property, which can affect the rights of secured parties.

Consumer goods are primarily intended for personal use, as opposed to being used in a business or commercial context. This means they are typically items purchased for enjoyment, utility, or household functioning, such as electronics, furniture, or appliances. The legal definition within the Uniform Commercial Code (UCC) supports this classification, emphasizing the intended use of the goods.

In secured transactions, understanding that consumer goods are defined by their use helps determine how these goods can be used as collateral and affects the priority of security interests. The classification is also important in the context of sales, title transfers, and lien enforcement. This understanding is essential for anyone engaging with secured transactions in the context of UCC regulations.