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 cosign a note to Irontilt Motors,which his father agrees to.What kind of liability does Calvin's father come under?
A) secondary liability
B) primary liability
C) fringe liability
D) warranty liability

Question

Quizplus · Accepted Answer

Calvin's father becomes a primary liable party by cosigning the note, which means he is equally responsible for repaying the debt along with Calvin.

Calvin,a College Student,wants to Purchase an Automobile on Credit from Irontilt