Manufactured Housing Practice Test

How should discounts be advertised on new manufactured/mobile homes?

1. Must provide a full disclosure on the products discounted

2. Must be limited to the difference between the suggested retail price

3. Must be limited to the difference between the advertised cash price and the suggested retail price

4. Are violations of the Federal Fair Trade Rules

The correct answer is: Must be limited to the difference between the advertised cash price and the suggested retail price

When advertising discounts on new manufactured or mobile homes, the correct approach is to focus on the difference between the advertised cash price and the suggested retail price. This method ensures that potential buyers have a clear understanding of the actual savings they can expect when considering the purchase. By grounding the discount in the context of both prices, it provides transparency and a straightforward comparison that helps consumers make informed decisions. Additionally, this approach aligns with industry practices that emphasize clarity in pricing. The other options do not accurately reflect how discounts should be communicated within the regulatory framework; they may either overcomplicate the discount structure or suggest misleading information regarding pricing and promotions. Therefore, focusing on the cash price relative to the suggested retail price maintains both transparency and compliance with standard advertising practices in the manufactured housing market.