Fact Pattern 28-1A (Questions A12-A15 Apply)

question 19

Multiple Choice

Fact Pattern 28-1A (Questions A12-A15 apply)
Dollar Value Motors asks Estimable Bank for a loan to increase its vehicle inventory.Estimable requires Flair,Dollar Value's president,sign a personal guaranty to pay the debt if Dollar Value defaults.Meanwhile,to buy a pick-up truck from Dollar Value,Gina asks Harper to co-sign a credit application.
-Refer to Fact Pattern 28-1A.If,after the loan agreement is signed,Gina agrees to a higher rate of interest without telling Harper,then Harper 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:

Toxemia

A medical condition in pregnancy characterized by high blood pressure, swelling, and protein in the urine.

Pre-Eclampsia

A health complication in pregnant individuals, featuring heightened blood pressure and symptoms showing organ system damage, especially in the liver and kidneys.

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, often leading to health problems such as heart disease.

Diethylstilbestrol

A synthetic estrogen that was prescribed between the 1940s and 1971 to prevent pregnancy complications, later found to cause cancer and other significant health issues.