Miguel Vilarinho purchased a used Maserati from Palmetto Sports Cars, Inc., for $66,895. He made an $18,000 down payment and financed the rest with World Financing Group, LLC. Vilarinho claimed years later that when he brought the car to a Maserati dealership for servicing, he was told for the first time that the car had been previously purchased back by the manufacturer as a

“lemon.” Vilarinho sued both Palmetto Sports Cars and World Financing for fraud and negligent misrepresentation.

World Financing asserted a counterclaim against Vilarinho for breach of contract. Vilarinho claimed that World Financing was subject to all claims and defenses that Vilarinho had against the seller because of FTC Rule 433. Did World Financing have holder in due course status?