Phillip purchases a brand-new, expensive oven from Restaurant Supplier, a restaurant supply store in Phillip's neighborhood and finances his purchase via a consumer loan in which Phillip issues a promissory note payable to Restaurant Supplier for $5,000 payable over three years at the prime interest rate. Restaurant Supplier then transfers Phillip's note to Biggie Smalls Bank for value. Soon after, the oven stops heating and working properly. It turns out that the oven was not new, as Restaurant Supplier advertised, but rather reconditioned with used parts. Must Phillip make the monthly payments due to Biggie Smalls Bank? Why or why not?

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The Answer of Phillip purchases a brand-new, expensive oven from Restaurant Supplier, a restaurant supply store in Phillip's neighborhood and finances his purchase via a consumer loan in which Phillip issues a promissory note payable to Restaurant Supplier for $5,000 payable over three years at the prime interest rate. Restaurant Supplier then transfers Phillip's note to Biggie Smalls Bank for value. Soon after, the oven stops heating and working properly. It turns out that the oven was not new, as Restaurant Supplier advertised, but rather reconditioned with used parts. Must Phillip make the monthly payments due to Biggie Smalls Bank? Why or why not?

Phillip Purchases a Brand-New, Expensive Oven from Restaurant Supplier, a Restaurant