Carl Agrees to Buy a Refrigerator from His Local Appliance

question 7

True/False

Carl agrees to buy a refrigerator from his local appliance store under an installment plan, with eight monthly payments of $100. The store immediately, and properly, assigns the deal to a finance company for $750 in cash. After the refrigerator is delivered it utterly fails to operate, and Carl refuses to make his payments to the finance company. The finance company demands continued payments and indicates that any issue of faulty goods must be taken up with the store as a separate matter. In this regard, it is in Carl's best interest to continue to make his payments lest he be successfully sued for being in breach of the agreement himself.

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Definitions:

Duty to Pay

An obligation imposed on an individual or entity to make a payment to another as required by law or contract.

Refuses to Pay

Describes a situation where an individual or entity declines or fails to fulfill a financial obligation, such as debts or invoices.

Accepted Goods

Items that have been received and approved by a buyer, indicating satisfaction with their condition according to the terms of the purchase agreement.

Repudiated the Contract

A situation where one party refuses to fulfill their obligations under the contract, effectively renouncing or rejecting it.