The local PizzaHat is having a going out of business sale and is selling everything in their store. All the chairs, tables, refrigerators, and ovens, and everything else included in their inventory and equipment “MUST GO NOW!” This sale is going on unbeknownst to BigBank, which has a properly perfected security interest in "all of the Debtor's equipment, presently owned and after-acquired.” This security interest is also unknown to their competitor, Little Brutus, who is interested in opening up another chain nearby and buys up all of the equipment from the going out of business sale.
BigBank later finds out about the sale and objects, citing its security interest. Which statement is correct?
1. Little Brutus took the assets free of BigBank's security interest as a good faith buyer in the ordinary course of business
2. Little Brutus took the assets subject to BigBank's security interest, because PizzaHat is not a business in the ordinary course of selling pizza kitchen equipment
3. Little Brutus took the assets free of BigBank's security interest under the "garage sale" exception
4. Little Brutus took the assets free of BigBank's security interest because it is customary for pizza restaurants to sell their restaurant equipment