Leo, a licensed real estate broker, advertised the sale of a mobile home and stated that no down payment was required. In fact, a down payment was required, but the broker had a lender lined up to make a loan for this purpose. What is the status of this ad?
a. It is illegal and deceptive advertising.
b. It is okay if the broker makes available a source to borrow the down payment.
c. It complies with the Truth in Lending Act.
d. As long as the purchase can be completed with no money out of pocket, the ad is truthful regarding no down payment.
Answer: a. It is illegal and deceptive advertising.
You might also like to view...
The most convenient document for a bank to use to get a security interest in a wide range of assets of a business when the bank makes a large business loan is a(n)
A) mortgage B) assignment of book debts C) general security agreement D) financing lease E) consignment
An approach to capital rationing that involves graphing project returns in descending order against the total dollar investment to determine the group of acceptable projects is called the ________
A) net present value approach B) internal rate of return approach C) payback approach D) profitability index approach