1) Loan sharks may threaten violence to collect their repayments to individuals who may lag in their repayments. In most cases, loan sharks are from a group of well-organized crime cartels. Therefore, moral hazard is the least of their concern as they can threaten an individual with violence if they fail to repay the debt. The groups never need background credit reports. They lend large sums of cash with the hope of gaining even higher returns in the form of interest rates over a short period.

2. Employers may worry about their employees putting minimal effort into sales when they are not paid in commission. Paying employees on a set salary may make salespeople lag in their sales as they will not have the push to sell more since they know even with their failure to put forth their best work, they would still get paid, and the company will bear the losses.