Contemporary Business Law 8th Edition by Henry Cheeseman

تمرين 7

Ethics Jessie Lynch became seriously ill and needed medical attention. Her sister, Ethel Sales, took her to Forsyth Memorial Hospital in North Carolina for treatment. Lynch was admitted for hospitalization. Sales signed Lynch's admission form, which included the following section:
The undersigned, in consideration of hospital services being rendered or to be rendered by Forsyth County Memorial Hospital Authority, Inc., in Winston-Salem, N.C., to the above patient, does hereby guarantee payment to Forsyth County Hospital Authority, Inc., on demand all charges for said services and incidentals incurred on behalf of such patient.
Lynch received the care and services rendered by the hospital until her discharge over 30 days later. The total bill during her hospitalization amounted to $7,977. When Lynch refused to pay the bill, the hospital instituted an action against Lynch and Sales to recover the unpaid amount. Forsyth County Memorial HospitalAuthority, Inc., 82 N.C.App. 265, 346 S.E.2d 212, Web 1986 N.C.App. Lexis 2432 (Court of Appeals of North Carolina)
1. What is a guaranty contract?
2. Did Lynch act ethically in denying liability?
3. Is Sales liable to Forsyth County Memorial Hospital Authority, Inc.?