To buy a truck under warranty from Detour Motors, Eli, a consumer, signs a note payable to the dealer. The note includes the notice required by FTC Rule 433. The dealer sells the note to Finance Company, which takes it in good faith, for value, and unaware of any defenses against payment. Eli discovers that the truck is defective and returns it to Detour Motors. The consumer can assert the breach of warranty to avoid payment on the note against

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FTC Rule 433, also known as the Holder in Due Course Rule, allows a consumer to assert against any subsequent holder of the note (including finance companies that purchase the note) all of the claims and defenses that the consumer could assert against the seller of the goods. Therefore, Eli can assert the breach of warranty to avoid payment on the note against both Detour Motors and the Finance Company.

To Buy a Truck Under Warranty from Detour Motors, Eli