Our orders are delivered strictly on time without delay 
Josephine Jones, or Jo-Jo, has always loved cooking. As a kid, she insisted on cooking dinner for her
brother, Tommy (who is 3 years older) even if she constantly made a mess. Tommy often ended up feeding
the food to the dog, but he was proud of his sister for her nightly effort, and didn’t have the heart to tell her
that her food was over seasoned and frequently inedible.
Shortly after her 17th
birthday, Jo-Jo decided she was going to pursue her lifelong dream by opening a small
restaurant. She found a great spot on a busy corner and went to Helpful Bank for a loan. With little to no
experience, the bank was skeptical to loan her the money. She complained to her older brother who agreed
to go with her to the bank. After much negotiating, and Tommy’s promise to co-sign the loan as a surety, the
bank agreed to lend Josephine $30,000 if she could get her parents (the Joneses) to sign a separate
guarantee agreement as well. Elated, Josephine executed all the necessary paperwork.
10 months later, Jo-Jo is in trouble. Her restaurant received terrible reviews in the local paper and she has
barely been able to break even. Tommy met a girl and moved to Ohio, where he is living, jobless, in her
parents’ trailer. He claims that he intends to raise Alpaca, once he can save up “a few bucks.” When Jo-Jo
fails to make her payment to Helpful Bank, they want to collect the money owed. Knowing that Jo-Jo’s
business is broke and her brother is insolvent, Helpful Bank decides to just go after the Joneses directly.
Is this a proper move for Helpful Bank? Can they collect money from the Joneses? Please discuss the
proper order for Helpful Bank to pursue collections. Please also discuss any defenses available to Jo-Jo,
Tommy and the Joneses.
