Rico's Grill, Inc. is solely owned by Rico Vito. Rico's Grill borrows $10,000 from a local bank to finance the purchase of a new range. The payments are to be made monthly over a two-year period. The bank
a. under the Truth-in-Lending Act must disclose to Rico, clearly and conspicuously, all of the credit terms and conditions of the loan.
b. under the Fair Credit Reporting Act must disclose all of its own credit terms, as well as those of two competing lenders.
c. need not make any special disclosures.
d. is exempt from the disclosure requirements of the Truth-in-Lending Act because its business includes more than just lending.
Answer: c. need not make any special disclosures.
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