Commercial Law, 2012 Bar — Question 85

MULTIPLE CHOICE

XYZ Corporation bought ten (10) units of Honda Civic from CCC Corporation. ABC Bank granted a loan to XYC Corporation which executed a financing agreement which provided for the principal amount, the installment payments, the interest rates and the due dates. On due dates of the installment payments, XYZ Corporation was asked to pay for some handling charges and other fees which were not mentioned in the Financing Agreement. Can XYC Corporation refuse to pay the same? A) No, because handling charges and other fees are usual in certain banking transactions. B) Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of the monthly installments but also the details of the finance charges as required by the Truth in Lending Act. C) No, because the Finance Agreement is a valid document to establish the existence of the obligation. D) Yes, because legally, finance charges are never allowed in any banking transaction.

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