Fact Pattern 33-1Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 33-1.If Tina signs the application only after language is included that requires Petro to exhaust its legal remedies against Slick before looking to her,then Tina is

Question

Quizplus · Accepted Answer

Tina is a guarantor because she has agreed to be responsible for the debt only after Petro has exhausted its legal remedies against Slick, which is a typical condition for a guarantor rather than a surety.

Fact Pattern 33-1Petro Oil Refinery Asks Quality Bank for a Loan