Rashi Is a Student at State University

question 70

Essay

Rashi is a student at State University. In need of funds to pay for tuition and books, Rashi asks Tiempo Loans, Inc., for a short-term loan. The lender agrees to make a loan if Rashi will have someone who is financially responsible guarantee the loan payments. Umberto, a well-known businessperson and a friend of Rashi's family, calls Tiempo and agrees to pay the loan if Rashi cannot. Because of Umberto's reputation, the loan is made. Rashi is making the payments, but because of illness he is unable to work for one month. He asks Tiempo to extend the loan for three months. The lender agrees, raising the interest rate for the extended period. Umberto is not notified of the extension (and thus does not consent to it). One month later, Rashi drops out of school. All attempts to collect the remainder of the loan from Rashi fail. Can Tiempo assert a claim against Umberto on the debt?

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Definitions:

Degree of Complexity

A metric that quantifies the intricacy and difficulty of a project or system, often considering variables like size, diversity, and interdependencies.

Additive Rule

A principle in probability that states the total probability of the union of mutually exclusive events is equal to the sum of their individual probabilities.

Intersection

An operation in set theory whereby only the elements that are common to all sets are included in the outcome.

Marginal Probability

The probability of a single event occurring without consideration of any other events.