Question: Jackson bought a car from South Holland Dodge SHD She
Jackson bought a car from South Holland Dodge (SHD). She also agreed to buy a service contract and extended warranty. The car was purchased using a retail sales installment contract that included, in addition to the purchase price, a separate charge for the service contract and warranty that was to be paid to the car manufacturer, the Chrysler Corporation. In fact, the amount listed was divided between SHD and Chrysler, and no one ever told Jackson or others that the charge was negotiable. SHD later assigned the contract to Chrysler Finance Corporation (CFC). Jackson and others brought a class- action suit against both SHD and CFC, claiming deceptive practices and misrepresentation under Illinois’s consumer fraud acts. CFC asked to have the case against it dismissed on the grounds that it was an assignee of the contract and therefore should not be responsible for the dealer’s acts. Should this defense prevail?
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