Fact Pattern 21-1 Petro Oil Refinery Asks Quality Bank for a Loan to a Loan

question 18

Multiple Choice

Fact Pattern 21-1
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 21-1. If, after the loan agreement is signed, Slick agrees to a higher rate of interest without telling Tina, then 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:

Sociocultural Psychologists

Researchers who examine how social, cultural, and environmental contexts influence behavior and mental processes.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a resemblance.

Culture

The social behavior and norms found in human societies, including knowledge, beliefs, arts, laws, customs, and habits.

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