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 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

Question

Quizplus · Accepted Answer

Calvin's father is acting as an accommodation party by agreeing to cosign the note, which means he is providing his creditworthiness to ensure that the loan is paid back. This allows IronTilt Motors to extend the credit to Calvin based on the father's credit history and income.

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