Guido Is an Unsavory Money Lender Who Charges 35% Interest

question 53

Multiple Choice

Guido is an unsavory money lender who charges 35% interest. Upon learning that Sylvia, one of his clients, had become unable to make her weekly payment, Guido tells her that he has "a way of dealing with defaulters where they think twice next time." She then promptly signs a contract agreeing to a 50% rate over a longer period of time. Sylvia now wants to get out of this second contract. As a lawyer, what should you advise Sylvia to do?

• A) Claim that she entered into the contract under undue influence.
• B) Claim that she entered because of constructive fraud.
• C) Claim that she entered under dire circumstances.
• D) Claim that she entered the contract under duress.
• E) Nothing but pay the debt at 50%; the contract is enforceable.

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Definitions:

Newsies

Refers to the young newspaper sellers in the early 20th century, often highlighting issues of child labor and workers' rights.

Homestead Strike

An industrial lockout and strike at the Homestead Steel Works in Pennsylvania, marking a significant event in American labor history.

Pullman Strike

A widespread railroad strike in 1894 in the United States against the Pullman Company, leading to a significant labor clash and federal intervention.

Working Conditions

The circumstances under which labor is performed, including hours of work, physical aspects, and any other terms or conditions of employment.