Davis

Defendants appeal from a judgment rendered against them in an action on an unsecured promissory note. We have concluded that the evidence is sufficient to support the findings that the execution of the note was not induced by fraud on the part of the plaintiff and that the judgment should be affirmed.

The present litigation arises out of the written guarantee by the defendant Don Davis of sales of merchandise made by the plaintiff to a corporation owned by his brother Jerry Davis. Plaintiff sells carpets and rugs at wholesale. During the years 1957 to 1959, Jerry Davis was the president and sole owner of Von's Carpet House, Inc., a corporation doing business at Jerry’s Carpet Mart, which had its principal place of business in San Jose and was engaged in selling carpets and rugs at retail. Jerry Davis also owned and managed another corporation known as Empire Carpet, Inc., which also sold carpets and rugs at retail in San Jose but was located at a different address. For convenience we hereafter refer to the above corporations as Jerry’s and Empire, respectively.

On November 19, 1957, Don Davis, who was then vice-president of Jerry’s, in order to establish credit for that business…