a. apparently underestimated the risk of the loan's nonpayment.
b. obviously calculated the optimum rate that the market will bear.
c. probably violated the usury laws.
d. unlawfully engaged in a restraint of trade.
2007-10-15 12:43:39 · 5 answers · asked by southernbelle540 1 in Politics & Government ➔ Law & Ethics
this is a question for my business law class.....this isn't actually taking place......
2007-10-15 12:52:23 · update #1
If he was stupid enough to take the loan then the answer is B.
2007-10-15 12:47:04 · answer #1 · answered by kmankman4321 4 · 0⤊ 0⤋
Chances are C would be the correct answer. However there are several other factors to consider. What is Ethan's credit score? Most places will not give anyone a loan without running their credit report to determine how much of a "credit risk" they are.
Secondly, depending on where First State Bank is located they may be allowed to charge whatever interest rate they want. As an example, some states like ND, SD, VA, and DE have no laws as to how much interest can be charged. This why almost all credit cards have their main offices based out of these states.
I don't think "D" applies since he was given the loan. The banks actions may not be ethical, but I certainly don't think they are illegal.
2007-10-15 21:14:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'd say definitely "c" expect for the fact there's no "probably" involved unless the state he's in is governed by Tony Soprano.
2007-10-15 19:48:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
a - anyone who is willing to pay that kind of interest has some serious problems and is way too risky to lend too.
2007-10-15 19:48:48 · answer #4 · answered by Yo it's Me 7 · 0⤊ 0⤋
its c just heard it on judge judy
2007-10-15 19:52:15 · answer #5 · answered by kellie r 5 · 0⤊ 0⤋