Broker Davis has had a house listed for sale for nine months without selling it. He knows that the building needs major structural repairs, and he has listed it at 10% above its fair market value. He runs an advertisement in a newspaper that says, "Three bedroom, Victorian. You won't believe the price! Move right in. Davis - 234-5678." This advertisement is bad because:
A: It is unethical to advertise a property that is over-priced;
B: If someone buys the house on the basis of the advertisement, the publisher could be held liable;
C: Since Davis knows that the property needs major repairs, it is deceptive and misleading;
D: It doesn't tell the asking price as required by Regulation Z.
Answer: C: Since Davis knows that the property needs major repairs, it is deceptive and misleading;
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