Butch is a student at Sundance Institute. To pay his tuition, Butch asks Etta's Loans Inc. for a loan. Etta's agrees if Butch gets a responsible party to guarantee he will repay the loan. Harriman, a noted philanthropist and a friend of Butch's family, phones Etta's and agrees to pay the loan if Butch cannot. Harriman's reputation causes the loan to be made. Butch starts making the payments, but because of illness he is unable to work for one month. He asks Etta's to extend the loan for three months. Etta's agrees, raising the interest rate for the extended period, but does not tell Harriman of the extension (who thus has not consented to it). One month later, Butch drops out of school. All attempts to collect the balance of the loan from Butch fail. 1. Can Etta's claim against Harriman for the debt? 2. Explain why and/or why not, referring to the appropriate laws, terms, and rights of the parties. Transaction Chapter secured Trans

Butch is a student at Sundance Institute. To pay his tuition, Butch asks Etta's Loans Inc. for a loan. Etta's agrees if Butch gets a responsible party to guarantee he will repay the loan. Harriman, a noted philanthropist and a friend of Butch's family, phones Etta's and agrees to pay the loan if Butch cannot. Harriman's reputation causes the loan to be made. Butch starts making the payments, but because of illness he is unable to work for one month. He asks Etta's to extend the loan for three months. Etta's agrees, raising the interest rate for the extended period, but does not tell Harriman of the extension (who thus has not consented to it). One month later, Butch drops out of school. All attempts to collect the balance of the loan from Butch fail. 1. Can Etta's claim against Harriman for the debt? 2. Explain why and/or why not, referring to the apprepriate laws, terms, and rights of the parties