Which of the Following Is NOT a Defence Available to a Guarantor

question 4

Multiple Choice

Which of the following is NOT a defence available to a guarantor when an action is brought by the creditor to have the guarantor held liable for the debt of the principal debtor?

• A) defences in contract, such as lack of consideration
• B) set- off between the creditor and debtor
• C) Res ipsa loquitur (the facts speak for themselves).
• D) misrepresentation on the part of the creditor in selling the goods
• E) any defence that the primary debtor had

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Definitions:

Cooperative Advertising

A cost-sharing arrangement between manufacturers and retailers or distributors to share the expense of advertising products.

Furniture Store Chains

Retail chains specializing in selling furniture and related home accessories, often operating multiple locations across regions.

Retail Sales Support

Services and activities designed to assist in the selling of products to end consumers in retail settings.

Vertical Marketing Systems

A coordinated structure where producers, wholesalers, and retailers operate as a unified system, often through ownership or contractual relationships, to improve efficiency and reduce costs.