Asked by Chih-Hsiang Chang on Jul 19, 2024
Verified
Phil entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000. The purchase was to be on credit, subject to a favourable credit report on Phil. Marina Boats checked with Credit Reporting Company and was informed that Phil had defaulted on a number of debts, and presently had judgments in the amount of $30,000 against him. If the information in the credit report is accurate, Marina Boats may deny credit to Phil on the strength of the report.
Credit Reporting
The process by which credit agencies collect, compile, and distribute an individual's or business's credit history to interested parties.
Favourable Credit Report
A credit report that shows a positive credit history, indicating that an individual is a low-risk borrower to potential lenders.
- Gain an understanding of the statutes governing consumer credit and its effects on the protection of consumers.
- Comprehend the specific role and application of consumer protection in electronic commerce and credit reporting.
Verified Answer
AM
Amber McCauleyJul 25, 2024
Final Answer :
True
Explanation :
Marina Boats can deny credit to Phil based on the unfavorable credit report, as it indicates a high risk of default given his history of defaults and existing judgments against him.
Learning Objectives
- Gain an understanding of the statutes governing consumer credit and its effects on the protection of consumers.
- Comprehend the specific role and application of consumer protection in electronic commerce and credit reporting.