Andy Bought a Bicycle on Credit from a Dealer

question 35

Essay

Andy bought a bicycle on credit from a dealer. Andy being a minor, his father agreed to be a surety for him on the purchase. When Andy failed to repay the debt within the stipulated time, the dealer filed a lawsuit against Andy's father. What defense can Andy's father use to avoid paying the dealer?

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Definitions:

Fixed Costs

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, or insurance premiums.

Janitorial Costs

Expenses associated with cleaning and maintaining a company's premises, including wages for janitorial staff and cleaning supplies.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Unit Variable Cost

The cost associated with producing one additional unit of a product, including materials, labor, and other variable expenses.