Lois Lane Has Owned and Operated a Consulting Business for Five

question 19

Multiple Choice

Lois Lane has owned and operated a consulting business for five years. She guarantees a loan that her husband, Clark Kent, a mild-mannered reporter, takes out in order to buy some real estate as an investment. Note that Lois will not benefit directly from this investment. The investment fails, the husband declares bankruptcy, and the bank sues Lois on her guarantee. Lois pleads undue influence. Which of the following statements is TRUE?

• A)There is a presumption of undue influence when a wife acts as a guarantee for her husband.
• B)There is a presumption of undue influence when a bank takes a guarantee from a party who receives no benefit from the main transaction (the subject of the loan).
• C)Lois must establish undue influence on the fact of this particular case.
• D)The fact that Lois has her own business is likely to negatively impact any claim of undue influence.
• E)Both C and D

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Definitions:

Photographic

Pertaining to or using light in the production of images, often used in context with photography or imaging techniques.

Few Tenths

A phrase typically used to describe a small quantity or measure, amounting to a fraction of a whole.

Picture-Image

A visual representation of an object, person, or scene produced on a surface.

Short-Term Memory

A cognitive function that holds a small amount of information in an active, readily available state for a short period.