Under a dealer obligor extended service agreement, who is liable for repairs if the administrator is out of business?

Under a dealer obligor extended service agreement, if the administrator goes out of business, it is the dealer who remains liable for repairs. This is because the dealer has made a contractual commitment to the buyer to provide service coverage as part of the agreement. When a buyer enters into an extended service agreement through the dealer, they are relying on that dealer to fulfill the terms of the contract, including the necessary repairs. In the case where the administrator becomes unavailable, the dealer is obligated to continue honoring the terms of the agreement since they are the entity that provided the service agreement to the buyer initially. As a result, the liability falls back on the dealer to ensure that the buyer's needs are met in terms of repair services.