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

question 8

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 Harper signs the application only after lan?guage is included that requires Dollar Value to exhaust its legal remedies against Gina before looking to her,then Harper is

• A)a surety.
• B)a lienor.
• C)a guarantor.
• D)a creditor.

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Definitions:

Consequentialism

An ethical theory that judges whether something is right or wrong based on the consequences of the action, rather than the action itself.

Utilitarianism

An ethical theory that suggests the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Ethical Relativism

The theory that moral principles are not universal but instead vary depending on culture, individual perspective, or societal norms.

Objective Standards

Criteria established by facts or law to make judgments based on unbiased benchmarks or guidelines rather than personal feelings or opinions.