1-

When the third party entering into the contract is aware of the principals identity and knows that the agent is acting on behalf of the principal in the transaction, then the agency relationship is a/an __________ agency.

Multiple Choice

• None of the choices are correct.

• undisclosed

• partially disclosed

• fully disclosed

2-

Briefly discuss why a creditor would want to attach property (1.5 points). Also, briefly discuss whether attachment is more often sought by secured or unsecured creditors and why (1.5 points).

3-

[Rough Start] Allison, who just graduated from college, wanted to buy a new car. However, she did not have much of a credit history, and the bank would not give her a loan unless she had a cosigner who agreed to be liable on the loan along with Allison. Allison's father cosigned with Allison on her loan at the bank. Allison also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, Sean, promised the bank, in writing that he would pay Allison's start-up loan for the real estate business if Allison did not do so. Unfortunately, Allison did not make any money in the real estate business. She went bankrupt along with Sean, who had been acting as her receptionist.

Allison's bankrupty on the debt owed by her father has what effect, if any?

Multiple Choice

• Allison's father is released only if the bank failed to take sufficient steps to sue Allison and require payment of the loan before she filed for bankruptcy.

• Allison's father is liable for the debt as he was when he initially signed the loan agreement.

• Allison's father is released only if Allison failed to give him sufficient notice of her plans to file bankruptcy.

• Allison's father is released in the same manner that Allison is released.