Amanda buys a vacuum cleaner to use in her home from retailer Andy.Amanda promises to pay for it in six monthly installment of $50 each.Andy assigns the contract to Big Finance Co.who paid value and took without notice of any defense.Big Finance Co.sues Amanda for nonpayment.Amanda has stopped making payments because the vacuum stopped working and Andy refuses to honor the express warranty he made to her at the time of the sale.Generally,any defense that Amanda may have against Andy is good against Big Finance Co.

Question

Quizplus · Accepted Answer

This is because Big Finance Co. took over the contract from Andy and as such, they stand in the place of Andy. Any defenses that Amanda has against Andy can also be raised against Big Finance Co.

Amanda Buys a Vacuum Cleaner to Use in Her Home