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 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 comes under primary liability because he has agreed to cosign the note, which means he is equally responsible for paying back the loan along with Calvin. Primary liability means that both parties are responsible for repayment of the debt.

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