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ANSWERS-CH28 - go to the merits of the contract between...

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CHAPTER 28 INTRODUCTION TO CREDIT AND SECURED TRANSACTIONS ANSWERS TO CHAPTER 28 True-False Multiple Choice 1. T 2. F 3. F 4. F 5. F 6. T 7. F 8. T 9. T 10. T 11. T 12. d 13. b 14. a 15. b 16. c 17. a 18. b 19. d 20. d 21. c 22. b Short Essay 23. An accommodation surety is a person who acts as a surety without compensation, such as a friend who cosigns a note as a favor. A compensated surety is usually a professional, like a bonding company, who is paid for serving as surety. Courts are generally more protective of accommodation sureties. 24. Gilda is incorrect. Sureties are entitled to employ defenses available to the principal only if the defenses go to the merits of the primary contract between the principal and the creditor. Henry's lack of capacity to enter into a contract is a defense that does not
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Unformatted text preview: go to the merits of the contract between Henry and Shaft. Therefore, Gilda, as a surety, is not entitled to avoid her obligation on the basis of Henry's insanity. 25. Sam's promise is not enforceable. Because his promise was conditional on the debtor's default, Sam is a guarantor. And contracts of guaranty must be written. 26. Yes, because a cosurety who performs has a right of contribution from the other cosureties. Because each was a surety for an equal amount, it looks as if Susan will get a one-third contribution from both Shelly and Samantha. Answers to Student Study Guide and Workbook Questions 48...
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