Ask Question
BusinessBusiness
15 July, 10:01

A developer advertises homes for sale with a total down payment of $2,000. A qualified buyer offers to pay the $2,000 down, but the developer states that the $2,000 down homes are all sold. Is this transaction covered under Truth in Lending Act

+5
Answers (1)
  1. 15 July, 10:27
    0
    Yes, this transaction is covered by the Truth and Lending Act because it represents an illegal and deceptive sales practice known as bait and switch advertising. Regulation Z (Truth and Lending Act) prohibits developers from carrying out deceptive advertising that might hurt the financial position of the potential buyer.

    Generally bait and switch practices happen when a company advertises a certain product with a deep discount, but when a customer approaches, the product is no longer available and another substitute (but more expensive) product is offered.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A developer advertises homes for sale with a total down payment of $2,000. A qualified buyer offers to pay the $2,000 down, but the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Concord Corporation acquired 21200 shares of its own common stock at $22 per share on February 5, 2017, and sold 10600 of these shares at $29 per share on August 9, 2018.
Answers (1)
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?
Answers (1)
Suppose the following statistics are available for the economy: CU = $60 billion RES = $100 billion DEP =
Answers (1)
Assume that an employee of a FINRA member firm opens a securities account at another FINRA member firm. If requested, the employing member firm can request duplicate (A) confirmations only.
Answers (1)
During Burns Company's first year of operations, credit sales totaled $140,000 and collections on credit sales totaled $105,000. Burns estimates that bad debt losses will be 1.5% of credit sales.
Answers (1)
New Questions in Business
What causes a change in the demand curve or a shift
Answers (2)
Glenda, a sales representative for revo appliances inc., had to deliver a presentation on her company's latest offering: an innovative food processor. her target clients were senior managers and chefs from a reputed restaurant.
Answers (1)
To discover the extent to which economic status can be used to predict political preferences?
Answers (1)
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost.
Answers (1)
Cullumber Company has issued three different bonds during 2019. Interest is payable annually on each of these bonds. 1. On January 1, 2019, 1,000, 6%, 5-year, $1,000 bonds dated January 1, 2019, were issued at face value. 2.
Answers (1)
Home » Business » A developer advertises homes for sale with a total down payment of $2,000. A qualified buyer offers to pay the $2,000 down, but the developer states that the $2,000 down homes are all sold. Is this transaction covered under Truth in Lending Act
Sign Up Forgot Password?