[Rough Start] Allison, Who Just Graduated from College, Wanted to Buy

question 56

Multiple Choice

[Rough Start] Allison, who just graduated from college, wanted to buy a new car. However, she did not have much of a credit history, and the bank would not give her a loan unless she had a cosigner who agreed to be liable on the loan along with Allison. Allison's father cosigned with Allison on her loan at the bank. Allison also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, Sean, promised the bank, in writing that he would pay Allison's start-up loan for the real estate business if Allison did not do so. Unfortunately, Allison did not make any money in the real estate business. She went bankrupt along with Sean, who had been acting as her receptionist.
-The agreement entered into between Sean and the bank is called what?

• A) A suretyship
• B) A guaranty
• C) A certified agreement
• D) An acknowledged agreement
• E) An executory promise

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Definitions:

Computer-scanned Image

An image created by converting a physical document or picture into digital form using a scanner.

Legal

Pertaining to laws or the practice of law; concerned with the system of rules that a particular country or community recognizes.

Fax Machines

Communication devices that transmit scanned printed material (both text and images) from one location to another over the telephone network.

Telephone Lines

Physical cables or circuits that transmit voice or data communications between different locations.