1. Is this stupidity a likely cultural factor in x company providing essays and the acount manager assigned has been too enthusiastic/stupid?
- Yes, some cultures are so stupid to the point that their "intelligence" becomes laughable to even the moderately educated in the first world countries. They are mostly stupid which is why they use threats to try and get their way with the student. In their country, intimidation and fear is the best method to make a problem go away, so that is how they treat others as well.
2. Are these companies formed by seasoned lawyers ...
- No, they do not have a single legal consultant on staff. They only pretend to sound legal, since their business has no legal basis in their home country anyway. They copy the TOS from other reputable sites that actually have legal counsel and hope that the same rules can apply in their business. However, since they do not plan on functioning in a legal manner anyway, any legalese you find on their site or service terms are not valid.