Manufactured Housing Practice Test

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What is a potential consequence of failing to disclose known issues with a manufactured home?

Legal liability for the dealer
Loss of customer trust
Increase in operational costs
Difficulty in selling homes in the future

The correct answer is: Legal liability for the dealer

Failing to disclose known issues with a manufactured home can indeed lead to legal liability for the dealer. When a dealer has knowledge of defects or significant issues that could affect the safety or value of the home and does not disclose them, they may be violating consumer protection laws. These laws require transparency and honesty in advertising and selling homes. If a buyer later discovers undisclosed issues, they may have grounds to seek legal action against the dealer, potentially resulting in lawsuits, financial compensation claims, and damage to the dealer's reputation. While loss of customer trust, increased operational costs, and difficulty in selling homes in the future can also be significant consequences of failing to disclose issues, the immediate and enforceable consequence is often the potential for legal liability, which can have serious financial ramifications for the dealer.