Phil entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000. The purchase was to be on credit, subject to a favourable credit report on Phil. Marina Boats checked with Credit Reporting Company and was informed that Phil had defaulted on a number of debts, and presently had judgments in the amount of $30,000 against him. If the information in the credit report is accurate, Marina Boats may deny credit to Phil on the strength of the report.

Question

Quizplus · Accepted Answer

Marina Boats can deny credit to Phil based on the unfavorable credit report, as it indicates a high risk of default given his history of defaults and existing judgments against him.

Phil Entered into an Agreement with Marina Boats for the Purchase