Numerous States Impose No Limit on the Rate of Interest

question 37

Multiple Choice

Numerous states impose no limit on the rate of interest that may be charged on:

• A) loans to corporations.
• B) credit card transactions.
• C) loans made by certain designated types of lenders.
• D) All of these.

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Definitions:

Legal Duty

Refers to an obligation imposed by law upon an individual to act or refrain from acting in a certain manner.

Proximately Caused

A legal principle that limits the damages a plaintiff can recover to those which are directly related to the defendant's actions.

Proximate Cause

A legal concept that links a defendant’s conduct with the plaintiff's injury or damage, establishing liability based on the foreseeability of the harm.

Unforeseeable Consequences

Outcomes that could not have been predicted or expected based on the information available at the time of decision or action.