[Debt Trouble] Isabella Has Significant Credit Card Debt Following a Semester

question 43

Multiple Choice

[Debt Trouble] Isabella has significant credit card debt following a semester abroad in Italy. Her tuition and living expenses had ended up costing more than she had anticipated. Isabella recently took a business law class and thought that she might be able to find a way out of her troubles. She owed $2,000 to Credit Card Company A and $3,000 to Credit Card Company B. She also owed $2,000 to the local Italian university for tuition and book expenses. Isabella is in negotiations with the university over the amount owed because one of the classes she had originally enrolled in was cancelled halfway through the semester. While the cancellation of that class did not significantly affect her academic career, Isabella thought that she should get at least some deduction on the overall tuition bill. Isabella called Credit Card Company A and told them that she was a student and could not afford to pay the entire $3,000 she owed. The representative of Credit Card Company A, who was working her last day, told Isabella just to pay $50, and that would be considered payment in full. The representative sent Isabella an e-mail to that effect. Isabella was very pleased and immediately quit her job at the campus bookstore, believing that with the reduction from Credit Card Company A, she would have a sufficient amount of extra money. Isabella then called Credit Card Company B and once again pled her case as a student. She talked Credit Card Company B into taking a used car with a blown-up engine worth around $1,000 in exchange for the debt. Transfer details regarding the car were worked out through e-mail. Finally, Isabella sent the university a check for $1,000 marked "paid in full." Much to her surprise and pleasure, the university did indeed cash the check. Isabella, however, was distraught to find that within 30 days, Credit Card Company A sent her a bill for $1,950, Credit Card Company B sent her a bill for $3,000, and the university sent her a check for $1,000 along with a bill for $2,000. Faced with all these claims, Isabella decided to look for work, and ended up finding work she enjoyed as a translator. Assume all credit card company representatives had authority to make the agreements at issue.
-What is Credit Card Company A's best argument in relation to enforcing Isabella's obligations?

• A) That the agreement constituted a bad deal for the card company.
• B) That only past consideration was involved.
• C) That student debt is not dischargeable as a matter of law and that the card company owed no obligation to Isabella regardless of statements made.
• D) That its promise was clearly an illusory promise that Isabella should have known could not be enforced once the card company discovered the true circumstances.
• E) That no consideration existed for its promise, and that based on Isabella's circumstances and behavior, enforcing the debt would not result in injustice to Isabella.

---

Definitions:

International Conglomerate

A large corporation that operates in various industries and is composed of companies located in multiple countries.

Foreign Corporation

A business entity that is registered in a country or jurisdiction different from where it primarily conducts its operations.

Supervisory Board

A group elected to oversee the management of an organization and make significant decisions on its behalf.

Corporate Structure

The organizational framework of a company, detailing the roles, responsibilities, and hierarchy within the organization.