Author Question: Usury is charging an interest rate higher than the maximum permitted by law. Indicate whether the ... (Read 96 times)

berenicecastro · **on:** Jun 24, 2018

Usury is charging an interest rate higher than the maximum permitted by law.
Indicate whether the statement is true or false

Question 2

Berth Ness signed a promissory note for the purchase of real estate in Arizona. Only his name appeared on the note. Berth had acted as an agent for several corporations and Louise Ness in the past. Upon default, the payee of the note brought suit to collect from the corporations and Louise. They claim Berth was not acting as their agent in the transaction and they are, therefore, not liable. Who is correct?

Mochi · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

TRUE

Answer to Question 2

Students should discuss the issues of actual and apparent authority. Did the payee know of any constraints on Ness? Would they assume Ness was acting for them? Ness v. Greater Arizona Realty, Inc., 517 P.2d 1278 (Az. 1974).