Allen has a terrible credit rating. He defaulted on his student loans, although it wasn't his fault. He became sick after graduating and could not make the payments. He is better now and has a good job as a financial advisor. Unfortunately, it will take seven years to clear off his bad credit rating. He has found a lender to lend him money to buy a car but the interest rate is 28 percent per year, or about three times the usual rate. Which of the following is true? (Read each separately.)

a.This is an example of duress. Allen can get out of the contract and need only pay the normal interest rate.

b.This is an example of undue influence, and Allen can get out of the contract.

c.This is an unfair contract, and Allen does not have to repay the money.

d.Allen is in a stressful position, but this is not an example of duress.

e.None of the above is true.