Lois Lane has owned and operated a consulting business for five years. She guarantees a loan that her husband, Clark Kent, a mild-mannered reporter, takes out in order to buy some real estate as an investment
Note that Lois will not benefit directly from this investment. The investment fails, the husband declares bankruptcy, and the bank sues Lois on her guarantee. Lois pleads undue influence. Which of the following statements is TRUE?
A) There is a presumption of undue influence when a wife acts as a guarantee for her husband.
B) There is a presumption of undue influence when a bank takes a guarantee from a party who receives no benefit from the main transaction (the subject of the loan).
C) Lois must establish undue influence on the fact of this particular case.
D) The fact that Lois has her own business is likely to negatively impact any claim of undue influence.
E) Both C and D
E
You might also like to view...
Words that draw mental pictures for the reader are good to use
Indicate whether the statement is true or false.
Gerard is choosing between two methods of organizing his bakery
Method one will require a counter person to wait on each customer individually before they proceed to the cashier to pay for their purchases. In this system, customers will arrive at the rate of 8 per hour and can be served by the counter person at the rate of 15 per hour. The cashier will be capable of serving customers at the rate of 20 per hour. For simplification purposes, assume that the arrival rate at the cashier phase is identical to the arrival rate at the first phase and that these waiting lines can be analyzed independently and combined. Method two will have the two employees wait on customers as they selected their pastries and also collect their money once their selections have been made. Customers still arrive at the rate of 8 per hour but now the total service time (pastry selection and payment collection) takes 5 minutes per customer. Calculate the average number of customers in the bakery and the average time spent in the bakery for both systems and make your recommendations to Gerard. What will be an ideal response?