Suppose a State Has Set a Usurious Rate of Interest

question 80

Multiple Choice

Suppose a state has set a usurious rate of interest as any interest rate above ________ percent.Joseph borrows $10,000 from Derek.Derek can demand a maximum of $11,000 without violating the usury law.

• A) 10
• B) 100
• C) 1
• D) 1000

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Definitions:

Promissory Note

is a written, signed document in which one party promises to pay another party a specific sum of money at a future date or on demand.

Personal Defense

Refers to the actions and strategies employed by an individual to protect themselves from harm or danger.

Disaffirm

In contract law, to indicate by a statement or act an intent not to live up to the terms of the contract.

Real Defense

A defense in law that allows a promissory note or negotiable instrument to be invalidated based on factors like fraud or forgery.