Question
Hailey visits Rent-it-Your-Way Electronics and selects a big screen television to buy that costs $1,199. Hailey cannot afford to purchase the television outright, so she
Hailey visits Rent-it-Your-Way Electronics and selects a big screen television to buy that costs $1,199. Hailey cannot afford to purchase the television outright, so she asks about financing. Ruby, the salesperson, assures Hailey that financing is available; Hailey can take the television home today and simply pay forty dollars each month until it is completely paid. Ruby shows Hailey their standard financing contract, which has three pages of tiny print. Hailey signs the contract and takes the television home. Hailey pays the monthly payment for ten months and then realizes that the balance has only gone down a small amount. Hailey looks closely at the monthly statement and realizes that the interest rate is thirty-five percent. At this rate, she will never get the television paid off. If Hailey tries to rescind the contract:
Hailey will win because the contract has unconscionable terms.
Rent-it-Your-Way will win because the contract has unconscionable terms.
Hailey will win because Ruby coerced her into signing the contract.
Anna, Sylvia, and Bonnie decide to purchase honey illegally from Canada and sell it in the United States. Each party contributes $500 to the venture, which has an expected return of $3,000 each. The morning they are to pick up the honey, Anna changes her mind; she does not want to be a part of any illegal deal. Sylvia and Bonnie proceed to purchase the honey and give the seller the agreed-upon $1,500. Because Anna withdrew from the deal before the illegal contract had been performed:
Anna is entitled to her share of the profits, $3,000, less any expenses incurred by Sylvia and Bonnie in obtaining and transporting the honey.
she is entitled to have her initial investment, $500, returned.
Anna is entitled to her share of the profits, $3,000.
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