Fact Pattern 32-1 Petro Refinery Asks Quality Bank for a Loan

question 22

Multiple Choice

Fact Pattern 32-1 Petro Refinery asks Quality Bank for a loan to increase its inventory. Quality requires Rob, Petro's president, to sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to make a sale of refined oil to Slick Lubricants Inc., Petro asks Slick's outside accountant Tina to co-sign a credit application.
Refer to Fact Pattern 32-1.  After the loan agreement is signed, Slick agrees to a higher rate of interest without telling Tina. Tina is

• A) discharged from the agreement.
• B) liable at the higher rate of interest.
• C) liable at the lower rate of interest.
• D) liable for the principal only.

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Definitions:

Minority Influence

Describes a situation where a smaller group within a larger society can influence the majority to accept their beliefs or behaviors.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues to promote acceptance of an argument, rather than logical reasoning.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of a message, considering logical and factual arguments.

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