2. Assume State A applies the Second Restatement.

Super Card Inc. is a credit card company headquartered in State A with its principal place of business there. Charlie Customer, a resident of State A, applies for a Super Card credit card which is approved. Customer owns a thriving local business with positive cash flow and has an excellent credit rating. He signs the cardholder agreement which states that the laws of State B will govern the agreement and payments will be made to Super Card Inc. in State A. The cardholder agreement provides for a fixed interest rate of 18.99% on purchases; however, if the cardholder fails to pay the minimum amount due by the due date, the interest rate is 28.99%. Charlie's purchases are all in State A where he wines and dines prospective clients at the finest restaurants. Charlie is delinquent paying his bill after one month and this continues for six months. Super Card Inc. brings a lawsuit in State A to recover for the entire balance calculated at the 28.99% interest rate. State A law provides that the maximum interest rate on agreements cannot exceed 14%, and it does not provide exceptions for credit card companies. State A law also states agreements that exceed the 14% rate areunenforceable.

The Court will:

A. Find State B law applies since that is what the parties chose.

B. Find that Super Card Inc. can choose any interest rate for its agreements.

C. Find that State B law violates a fundamental policy of State A.

D. None of the above.