Manufactured Housing Practice Test

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What is a requirement when advertising merchandise or services as free with the purchase of a unit?

It cannot be covered by a fee as part of the transaction
It must be incentivized to induce sales
It must be clearly provided prior to delivery of the unit
It must not be covered by any rebates

The correct answer is: It cannot be covered by a fee as part of the transaction

When advertising merchandise or services as "free" with the purchase of a unit, it is essential that the offer is not contingent upon any additional fees associated with the transaction. This means that if a customer is led to believe they are receiving something at no cost, there should be no hidden costs or fees that negate the "free" aspect of the promotion. This requirement helps ensure transparency in advertising and protects consumers from misleading offers. If customers discover that they must pay a fee that effectively cancels out the value of the "free" item, it could be seen as false advertising. Therefore, for an offer to be genuinely perceived as free, it must not have any strings attached in the form of fees. The correctness of this choice is grounded in consumer protection laws that aim to prevent deceptive practices in advertising, ensuring that customers have a clear and truthful understanding of the offers being made.