Dina Asks Edie to Co-Sign a Credit Application So That

question 47

Multiple Choice

Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 25-1.If,after the loan agreement is signed,Dina agrees to a higher rate of interest without telling Edie,then Edie 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:

False Cause

Refers to a logical fallacy where it is assumed that because one event follows another, the first event caused the second.

Appeal to Ignorance

A logical fallacy that occurs when one argues that a proposition must be true because it has not been proven false or vice versa.

Non Sequitur

A statement that does not logically follow from the previous argument or statement.

Appeals to Tradition

A logical fallacy where it is argued that something is right or acceptable because it has been traditionally done or believed.