Glenn Decided to Borrow from Jones Bank Since It Promised

question 75

Multiple Choice

Glenn decided to borrow from Jones Bank since it promised that his loan interest rate would be systematically reduced every year when the board met.The loan rate was never reduced,but actually increased monthly.Glenn refused to pay the interest demanded and sued for rescission of the contract;thereupon,the bank attempted to collect from Lewis,a surety under the loan.Does Lewis have to pay?

• A) Yes,because fraud is no defense
• B) No,because a fraud perpetrated upon Glenn will be a defense
• C) Yes,since the surety obligation is separate from the underlying contract
• D) No,because the surety stands in the shoes of the debtor for all purposes

Explore the interplay between leadership ethics, moral development, and societal justice.

Understand the central role of ethics in leadership.

Identify the principles of ethical leadership.

Differentiate between ethical leadership theories.

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Definitions:

Law of Effect

A principle of behavior psychology suggesting that actions which produce rewards tend to be repeated, while actions that produce discomfort are avoided.

Positive Outcomes

Favorable, beneficial, or desirable results from actions, decisions, or situations.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behavior.

Situational Factors

External conditions or events that influence an individual's behavior or outcomes, often beyond their control.