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 co-sign 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 co-signing the note for Calvin. This means that he is lending his creditworthiness and assuming the risk of payment if Calvin fails to make the payments.

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