Smartt Software Company Borrows $10,000 from Term 'N All Loans,Inc

question 21

Essay

Smartt Software Company borrows $10,000 from Term 'N All Loans,Inc.,but cannot repay the loan when it comes due.Term 'N All refuses to ex?tend the time for repayment unless Smartt can provide an acceptable surety.Uno Venture Corporation agrees to act as a surety for the loan af?ter Smartt offers the firm a discount on software and shows Uno financial statements,compiled with Term 'N All's assistance,that misrepresent Smartt's financial situation.Later,after Uno uses the discount to buy software,Smartt again defaults on repayment of the loan,and Term 'N All files a suit against Uno to collect the amount of the debt.Is Uno liable? Why or why not?

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Definitions:

Pollen

Fine to coarse powdery substance comprising pollen grains, which are male microgametophytes of seed plants, responsible for the fertilization of the female ovule.

Self-incompatibility

A mechanism in some plants that prevents self-fertilization and promotes genetic diversity by rejecting pollen from the same or genetically similar plant.

Pollen Tube

A tube that forms from a pollen grain and grows toward the ovule to enable sperm to pass directly to an egg for fertilization in plants.

Diploid

An organism or cell that contains two complete sets of chromosomes, one from each parent.