In Transport North American Express Inc

question 105

Multiple Choice

In Transport North American Express Inc. v. New Solutions Financial Corp., various payments were found to be "interest" within the meaning of s. 347 of the Criminal Code. The interest rate applied was illegal. The Supreme Court applied "notional severance", resulting in a reduction of the interest rate. The Supreme Court of Canada outlined four factors to consider when deciding whether to declare an illegal contract void, or to partially enforce it. Which of the following is not one of those factors?

• A) whether the contract was a standard form agreement
• B) whether the purpose or policy of s. 347 would be subverted by severance
• C) whether the debtor would be given an unjustified windfall
• D) the relative bargaining positions of the parties and their conduct in reaching the agreement
• E) whether the parties entered into the agreement for an illegal purpose or with an illegal intention

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Definitions:

Unconscious Intuition

The process of understanding or making decisions without the awareness of the reasoning behind them.

Conscious Deliberation

The process of carefully considering or thinking about something in a systematic way.

Self-Serving Bias

The common human tendency to attribute one's successes to personal attributes and failures to external factors.

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, often leading to a loss of wealth and the collapse of markets.