Monte Miller Buys a Television from Discount Electronics on Credit

Multiple Choice

Monte Miller buys a television from Discount Electronics on credit. Discount gives a written assignment of the debt to Metro Finance Co. When Metro demands its first monthly payment from Miller, he says that the television needed a repair and he is deducting the cost thereof from his payment. Can Monte do this? Why or why not?

A) No. This was a statutory assignment, not an equitable assignment, so it was not "subject to the equities".
B) No. There was no privity of contract between Monte and Metro.
C) Yes. Metro, as assignee, can stand in no better position than Discount, the assignor, and Discount would be responsible for the cost of the repair.
D) No. Monte may have a good case against Metro, but he will have to sue. He cannot simply deduct the cost of repairs from his payment.
E) Both A and B