Diane, who is seventeen years old, purchased an auto from Elvira on credit. Florence agreed to act as surety and signed a written surety agreement. At the time of purchase, Diane specifically asked Elvira about the condition of the car's motor and was
told that it had just been replaced with a new one and was in fine condition. This was blatantly untrue, because Elvira knew it was in terrible shape and would only last a short time. The auto has now stopped running and Diane refuses to make any more payments. Elvira is now proceeding against Diane and Florence. What defenses, if any, are available to (a) Diane and (b) Florence?
(a) Diane is a minor. She may assert her minority status as a defense. She may also assert the defense of fraud in the inducement, because of the misstatement regarding the car motor.
(b) Florence, as a surety, may not assert Diane's minority status, because that defense is considered to be a personal defense of the debtor. She may, however, assert the defense of fraud in the inducement.
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