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

question 28

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 Consumer Credit 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 

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

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Definitions:

Biosphere

The global sum of all ecosystems, including all living organisms and their relationships to each other and to their environments.

Groundwater

Water that occurs in the pores, fractures, and cavities in the subsurface.

Ocean Currents

Systems of surface and subsurface currents that circulate throughout the ocean, driven by factors such as wind, temperature, salinity, and the Earth's rotation.

Solar System

The collection of eight planets and their moons in orbit around the Sun, together with smaller bodies such as asteroids, meteoroids, and comets.