Lovett County Bank offers to lend money to Kino,the owner of Java Stop,at 15 percent interest.Before Kino accepts,a state statute is enacted prohibiting loans at rates greater than 12 percent.Kino and the bank have

Question

Quizplus · Accepted Answer

Since the state statute prohibits loans at rates greater than 12 percent, the previously offered 15 percent interest loan is no longer valid. Without a new agreement between Kino and the bank for a loan at 12 percent interest or less, there is no valid contract for a loan, making option D the correct answer.

Lovett County Bank Offers to Lend Money to Kino,the Owner