Manufactured Housing Practice Test

Advertisements for units using the phrase "no finance charges" are:

1. Prohibited by the Reese-Levering Financial Act

2. Permitted providing there are no charges for payments on a time payment basis

3. Permitted if there are no fees for payments on a time payment basis

4. Permitted if the requirements of the financial code are satisfied

The correct answer is: Permitted if there are no fees for payments on a time payment basis

Advertisements for units using the phrase "no finance charges" are deemed appropriate under specific conditions. The correct rationale here lies in the understanding that these advertisements can be utilized as long as there are genuinely no fees associated with payments made over time, which relates to the financial obligations tied to purchasing manufactured housing. When the advertisement claims "no finance charges," it conveys a clear message to consumers that they will not incur additional costs typically associated with financing a purchase over a longer timeframe. This statement can be an enticing option for consumers, creating an appealing scenario where the perceived value of the unit is enhanced by the absence of extra costs. In essence, the legality and appropriateness of such advertisements hinge on the actual absence of financing fees, which is consistent with the stipulation found in consumer protection laws. Advertisements must represent truthfully the financial conditions under which consumers are entering agreements, ensuring that potential buyers have a clear understanding of their financial responsibilities. Thus, as long as the encounter with time payment terms does not include finance charges, the advertisement is acceptable and aligns with fair and transparent marketing practices.