Your Car Dealer Hands You Documents for Your Signature, "The

question 53

True/False

Your car dealer hands you documents for your signature, "the paperwork on the deal" you have just shaken hands on. Among the papers is an undiscussed extended warranty plan. You sign all the documents where the dealer so indicated. You first become aware of the warranty when its cost is automatically debited from your chequing account. Your successful defence to further payments will be non est factum.

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Definitions:

Bond

A share interest in the indebtedness of a corporation; often used synonymously with “debenture,” though a bond is normally secured against specific assets, while a debenture is likely not.

Borrow Funds

Refers to obtaining money from another party, usually a financial institution, under the agreement that the money will be repaid, typically with interest.

Accumulating Debt

The process of increasing debt through borrowing or the accumulation of interest on existing loans.

Corporation

A business organization that is a separate legal entity from its owners, the shareholders.