The Block furniture store granted credit to many customers for the purchase of furniture and appliances. It had separate categories for furniture credit and appliance credit. It statutorily assigned its furniture credit to Prestige Financing Inc. and its appliance credit to Gold Stream Financing Ltd. Karim purchased a bed for $700 and a stove for $700 from The Block and received financing for both purchases on the same contract. When The Block's contracts were assigned, Karim's was assigned to both assignees. On Monday he received a notice of assignment from Prestige Financing Inc. and on Tuesday from Gold Stream Financing Ltd. To whom should Karim make his next payment?
A) The Block
B) Gold Stream Financing Ltd.
C) Prestige Financing Inc.
D) 50% to Gold Stream Financing Ltd. and 50% to Prestige Financing Inc.
E) Karim should not make a payment.

Question

Quizplus · Accepted Answer

Karim's furniture credit was assigned to Prestige Financing Inc., and his appliance credit was assigned to Gold Stream Financing Ltd. Since he purchased both a bed and a stove, his contract was assigned to both assignees. Therefore, he should make his next payment to Prestige Financing Inc.

The Block Furniture Store Granted Credit to Many Customers for the Purchase