After purchasing a car from a dealership, Martin is told by the dealership that the interest rate will be higher than what he has agreed to when he bought the car. The dealership has probably violated ______________ laws.
A) Packaging and labeling
B) Cooling-off
C) Tying agreement
D) Reciprocal dealing
E) Truth-in-lending

Question

Quizplus · Accepted Answer

The dealership has most likely violated the Truth-in-lending laws which require creditors to disclose the terms and costs of credit to consumers including the APR (annual percentage rate) and finance charges. If the dealership did not properly disclose the interest rate to Martin, they would be in violation of this law.

After Purchasing a Car from a Dealership, Martin Is Told