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:

Institutional Racism

Discriminatory practices, policies, and norms existing within and perpetuated by societal institutions, disadvantaging certain racial groups.

Systemic Racism

Systemic racism involves policies and practices entrenched in established institutions, which result in the exclusion or promotion of designated groups based on race.

Sikh Officers

Individuals of Sikh faith who serve in official capacities or positions of authority within organizations, often noted in the context of military or police service.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.