Samuel Signed a Contract to Purchase Furniture on Credit

question 6

Essay

Samuel signed a contract to purchase furniture on credit. The contract clearly set forth in bold print all charges included in the cost of the credit, including the interest rate and annual percentage rate. The seller informed Samuel that the seller regularly sold these contracts to a finance company that paid it immediate cash and then collected from the debtors. The seller further advised that the finance company did not want "the headache" of determining the validity of consumer complaints and that therefore the contract provided that the consumer waived all defenses concerning the furniture against the finance company. The contract expressly provided that the seller would remain responsible for any non-conformities in the furniture or breaches of contract on its part. The furniture was defective, but the finance company is demanding that Samuel make the payments to it required by the contract and resolve its disputes with the seller of the furniture. Samuel consults you regarding his rights. What is your response?

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Definitions:

Group Decision Making

A process in which multiple individuals come together to analyze problems or situations and make decisions as a collective.

Pressure to Conform

The social force that encourages individuals to adjust their behaviors, beliefs, or actions to align with group norms.

Decision-Making Process

A systematic approach used in determining the best choice from among various alternatives.

Course of Action

A chosen path or strategy intended to accomplish a specific goal.