Calvin, a College Student, Wants to Purchase an Automobile on Credit

question 42

Multiple Choice

Calvin, a college student, wants to purchase an automobile on credit from IronTilt Motors. He does not have sufficient income or the credit history to justify the extension of credit to him alone. Calvin asks his father to co-sign a note to IronTilt Motors, which he does. What role does Calvin's father fulfill here so that Calvin can buy the car?

• A) an accommodation party
• B) an agent
• C) a principal
• D) a qualified indorser

---

Definitions:

Class Action

A type of lawsuit where one of the parties is a group of people who are represented collectively by a member of that group.

Dividends

Disbursements issued by a company to its shareholders, representing a distribution of the company's earnings to its stockholders.

Corporation Treasury

The division within a corporation responsible for its financial operations, including cash management, investments, and risk management.

Shareholder Minutes

Official records of the discussions and decisions made during shareholders' meetings of a corporation.