Demarkus Finally Received Financial Backing from His Wealthy Aunt in Order

question 10

Multiple Choice

Demarkus finally received financial backing from his wealthy aunt in order to open a pawn shop. He contacted the landlord of a nearby shopping center since he had his eye on a vacant storefront. To his surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to Demarkus?

• A) A fixed-rate clause
• B) An escape clause
• C) A licensing clause
• D) A prohibited-use clause
• E) An exit clause

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Definitions:

Bankruptcy

The state of a person who is unable to pay his or her debts without respect to time; one whose liabilities exceed his or her assets.

Contract Law

The body of law regulating legally binding agreements between parties, specifying the rights and duties that arise from agreements.

Procedural Law

Refers to the part of the legal system that sets out the methods and procedures for enforcing rights and obligations, including the steps for conducting a lawsuit.

Administrative Regulation

Rules and regulations created by administrative agencies to direct the conduct within their specific areas of authority.