Premier Contracting Corporation purchased some equipment from Capitol Equipment Inc. pursuant to a contract that contained warranties.
Premier paid by issuing a promissory note to Capitol that made no reference to the purchase contract or the warranties.
Capitol immediately sold the promissory note to Industry Finance Factors LLC for slightly less than face value and indorsed it over to them.
Soon after delivery, Premier realized that the equipment was defective. Premier filed a lawsuit against Capitol for breach of contract.
Industry Finance Factors LLC has demanded payment from Premier but Premier has refused to pay, because of the problems with the equipment.
Will Industry Finance Factors LLC be able to insist on payment by Premier Contracting Corporation despite the problems with the equipment?