[Defaulted Loan] Bruce Wanted to Open His Own Restaurant, the Burger

question 10

Multiple Choice

[Defaulted Loan] Bruce wanted to open his own restaurant, The Burger Bar, and called his friend Janet for a loan. Janet orally agreed to loan Bruce $200,000. The agreement was not put into writing. Two years later, the loan was never repaid and is in default. The Burger Bar is bankrupt and Janet decides to sue Bruce in his individual capacity.
-If the reasoning of the case in the text, Athanasios Valsamis v. Néstor González-Romero is followed, what would Janet have to prove in court?

• A) Janet does not have to prove anything, as the burden would shift to Bruce to prove an agreement did not exist.
• B) Janet must prove money is due and Bruce is the responsible party.
• C) Janet must prove money is due.
• D) Janet must prove The Burger Bar is the responsible party.
• E) Janet must prove money is due and The Burger Bar is the responsible party.

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Definitions:

Order Lead Time

The time duration from placing an order to receiving the order, crucial in inventory management and customer satisfaction.

Stockout Risks

The potential for inventory shortages that can result in lost sales, customer dissatisfaction, and negative impacts on a business's reputation and income.

EOQ

Economic Order Quantity, a formula used in inventory management to determine the optimal order size that minimizes total inventory costs.

Safety Stock

Additional inventory kept in reserve to protect against stockouts due to variability in demand or supply.