Example of what type of generally illegal agreement

Assignment Help Operation Management

Reference no: EM131034491

Eugene's dream is to open his own restaurant. The only problem is he does not have the financial backing for this endeavor. He repeatedly tries to get a loan from a bank or other commercial lender, but he's denied each time. Desperate for the funds, Eugene gets the contact information for a loan shark and decides to enter into a private loan agreement. The only catch is that Eugene will have to pay an interest rate of 20%, which is double the maximum allowed interest rate in his state. Although Eugene has some reservations about entering into the agreement, he accepts anyway.

1. The situation in the case study above is an example of what type of generally illegal agreement? Explain why this type of agreement is generally illegal.

2. What would happen if this agreement actually occurred? In other words, how do states treat this type of illegal agreements once they are formed?

3. Suppose that a court determined that both parties were at fault for this illegal agreement. What would the effect of the illegal agreement be? In other words, what would happen to the agreement if both parties are at fault?

Reference no: EM131034491

Questions Cloud

Organizational design-staffing and performance management : What are the human resource issues facing the vice president's department and under which of the HR domains (e.g. Organizational Design, Staffing, Performance Management an Appraisal) does each issue belong? Identify some strategies for dealing with ..

Fundamental to the development of our legal tradition : Sources of Law. This chapter discussed a number of sources of American law. Which source of law takes priority in the following situations, and why? Stare Decisis. In the text of this chapter, we stated that the doctrine of stare decisis" became a co..

Express authority to solicit orders from customers : Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customers and to offer a 5 percent discount if payment is made within thirty days of delivery. Petri has said nothing to Adam abou..

While standing in line at the coffee machine : While standing in line at the coffee machine, you overhear the person in front of you saying “I’m really tired of having to deal with the old-timers here. It’s time for them to call it quits. There’s no way they can keep up the pace and handle all th..

Example of what type of generally illegal agreement : Eugene's dream is to open his own restaurant. The only problem is he does not have the financial backing for this endeavor. He repeatedly tries to get a loan from a bank or other commercial lender, but he's denied each time. The situation in the case..

Customer has recently tightened the specification : A customer has recently tightened the specification for a part your company supplies. The specification are now tighter the machine being used for the job is capable of. Identify the alternatives to solve this problem.

What is the major advantage of perceptual mapping : What is the major advantage of perceptual mapping?

Strategic leadership-contrast strategic-financial controls : Compare and contrast strategic controls and financial controls. Provide specific examples of how each may be used to best serve a corporation. As a strategic leader, determine if you would feel ethically responsible for developing your firm’s human c..

Vital to the process of properly preparing data for analysis : What is vital to the process of properly preparing data for analysis? It must be accurately translated, summarized and verified. All of these answer. It must be carefully coded. Confirmation the data measures what it is supposed to measure.

User Account

All Pages