Asked by Spencer Hamer- on May 10, 2024
Verified
Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to
A) no federal law.
B) the Fair Credit Reporting Act.
C) the Telecommunications Act.
D) the Truth-in-Lending Act.
Installment Contract
Under the Uniform Commercial Code, a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
Truth-In-Lending Act
A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.
- Understand the application of the Truth-in-Lending Act to various credit transactions.
Verified Answer
LT
Le Thi Huong (K14 DN)May 16, 2024
Final Answer :
D
Explanation :
The Truth-in-Lending Act is applicable here as it requires lenders, including sellers like Home Appliance Store offering financing, to disclose to consumers the terms and costs of credit transactions, which would include an installment contract for the purchase of kitchen appliances.
Learning Objectives
- Understand the application of the Truth-in-Lending Act to various credit transactions.