Tim Buys a High-Powered Tool from Binford Tools to Use

question 23

Multiple Choice

Tim buys a high-powered tool from Binford Tools to use on the construction of his own garage.Binford Tools provides a full warranty on the tool for the first six months.To pay for the tool,Tim signs a negotiable promissory note which contains the FTC Notice.Binford properly negotiates the note to First Finance.Within three weeks,the tool stops working and Binford refuses to repair or replace it.In the meantime,First Finance demands payment from Tim.Under the Federal Trade Commission rules,this consumer credit situation means First Finance can:

• A) collect if it is a holder in due course.
• B) collect if it is not a holder in due course.
• C) collect whether or not it is a holder in due course.
• D) not collect.

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Definitions:

Dr.Strangelove

A fictional character and title of a satirical film that explores themes of nuclear conflict and political satire.

Soviet Union

A former federal socialist state in eastern Europe and northern Asia, existing from 1922 to 1991, known for its communist government.

Gas Pump

A mechanical device at a fuel station used to dispense gasoline or diesel into the fuel tanks of vehicles.

Local Ordinance

Laws, rules, or regulations that are passed and enforced by a local government authority, applicable only within its jurisdiction.