ETHICS S. J. Littlegreen owned the Lookout Mountain Hotel. In financial trouble, he put the hotel on the market at a price of $850,000. C. Abbott Gardner was his real estate agent. To obtain more time...

ETHICS S. J. Littlegreen owned the Lookout Mountain Hotel. In financial trouble, he put the hotel on the market at a price of $850,000. C. Abbott Gardner was his real estate agent. To obtain more time to sell, Littlegreen decided to refinance his debt. Mr. Rupe agreed to lend Littlegreen $300,000. When this loan was ready for closing, Gardner informed Littlegreen that he expected a commission of 5 percent of the amount of the loan, or $15,000. Gardner threatened to block the loan if his demands were not met. Littlegreen needed the proceeds of the loan badly, so he agreed to give Gardner $4,000 in cash and a promissory note for $11,000. On what grounds might Littlegreen claim that the note is invalid? Would this be a valid defense? Even if Gardner was in the right legally, was he in the right ethically? Would he like everyone in town to know that he had squeezed Littlegreen in this way? How would he have felt if he had been in Littlegreen’s position? Does might make right?