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Burns, who is 16, purchased a computer for $20,000 from Dollar Bank. The purchase was financed by Dollar Bank and Dollar required that an acceptable
Burns, who is 16, purchased a computer for $20,000 from Dollar Bank. The purchase was financed by Dollar Bank and Dollar required that an acceptable surety for the entire amount be obtained. As a result, Surety Co. agreed to act as surety on the loan. After the computer sale, it was determined that Burns was fraudulently induced by Dollar to make the purchase. Burns refused to pay the loan and defaulted. Which of the following statements is correct regarding the liability of the surety. a. Dollar may not collect from the surety because of the fraud of Dollar on Burns and the minority of Burns. b. Dollar may collect from the surety and neither the fraud of Dollar on Burns or his minority is a defense. c. Only the minority Burns is a defense for the surety. d. Only the fraud by Dollar is a defense for the surety
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