Fact Pattern 19-1 Petro Oil Refinery Asks Quality Bank for a Loan to a Loan

Fact Pattern 19-1
Petro 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 19-1.If Robin is a guarantor, then the guaranty is required to be in writing because of​

A) ​the debtor's right of redemption.
B) ​the co-signer's right of contribution.
C) ​the creditor's transfer of possession.
D) ​the Statute of Frauds.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free