Julia Staines Entered into an Agreement with Cellco for the Provision

question 8

Multiple Choice

Julia Staines entered into an agreement with Cellco for the provision of a cell phone. The agreement which she signed provided as follows:
Late payment charge increase
Due to an increase in the prime interest rate, effective January
1, 2008, Cellco increased the amount it charges on overdue
Accounts to 1.25% per month or 16.07% per year.
Julia had possession of the cell phone for only three months when she started missing the due dates for payment of the charges she incurred. Julia decided to review her statement from Cellco and saw that she was being charged interest of 1.25% per month. She has decided to challenge the amount charged for interest in Court. Which of the following statements applies to the situation?

• A)no interest should be charged on her account
• B)the rate of interest charged is legal
• C)the rate of interest charged breaches the Canada Criminal Code
• D)the rate of interest cannot exceed the prime interest rate
• E)this rate of interest would be considered a penalty

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Definitions:

Workers' Compensation

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.

Profit Sharing

An employee benefit scheme where a portion of a company's profits is distributed to the employees, strengthening their investment in the company's success.

Pay-for-Knowledge

A compensation strategy that rewards employees for acquiring and utilizing additional skills or knowledge that contribute to their job performance and organizational success.

Job Evaluation

The process of determining the relative value and importance of jobs within an organization to establish fair compensation levels.