Gina and Douglas Felde purchased a Dodge Daytona with a 70,000-mile warranty. (Dodge is a division of Chrysler.) They signed a loan contract with the dealer to pay for the car in 48 monthly installments of $250. The dealer sold the contract to the Chrysler Credit Corp. Soon, the Feldes complained that the car had developed a tendency to accelerate abruptly and without warning. Neither of two Dodge dealers was able to correct the problem. The Feldes filed suit against Chrysler Credit Corp., but the company refused to rescind the loan contract.

The company argued that, as a holder in due course on the note, it was entitled to be paid regardless of any defects in the car. How would you decide this case if you were the judge?