Which of the following represents a situation where buyers in the ordinary course are protected?

The situation where buyers in the ordinary course are protected typically involves a buyer who purchases goods in a manner consistent with how such transactions are ordinarily conducted. In this context, the correct choice involves a buyer purchasing a refrigerator on credit.

When a buyer purchases in the ordinary course, they are generally protected from the claims of a secured party if they did not know about any existing liens on the goods they are buying. In this scenario, purchasing on credit is a common transaction method, suggesting that the buyer is acting within expected norms of retail transactions. Such circumstances provide protection under UCC § 9-320, which safeguards buyers in the ordinary course from the claims of creditors who may have a security interest in the goods sold, assuming the buyer is unaware of the security interest.

Other situations, such as a buyer purchasing a fridge with an existing lien or failing to notify the seller's creditors, present possible vulnerabilities. These transactions may involve complexities related to existing security interests or obligations to inform involved parties, which might diminish the buyer's ordinary course protections. Similarly, a buyer who pays in advance for inventory could also encounter issues if the seller has outstanding debts or liens that the buyer is unaware of, making this option less optimal for protection as well.