Vendor contracts can specify any amount of collection fee.

• A. False
• B. True
• C. Not specified
• D. Only fixed by statute

Answer: (B)

In contract terms, what parties agree to governs what happens, including how much a vendor can charge for collection. A vendor contract can set a collection fee amount or a method for calculating it, as long as there’s no prevailing law that overrides or caps those terms. That’s why this statement is true: the contract reflects the negotiated fee, and there isn’t an automatic statutory limit applied in every case. If a jurisdiction has a specific cap, that would apply, but in general, the parties can specify the fee amount in the contract. The alternative that fees must be fixed by statute isn’t correct in typical contract practice, and saying there’s no fee or that the statement is false would ignore the basic principle that contract terms are driven by mutual agreement.