Question

Tori and scott have applied for an $8,000 installment loan to pay for a new car. they are told that the loan is approved and the lender fills out all the paperwork, which states that they will pay an annual percentage interest rate of 8.2 tori and scott signed the loan papers. the next day, they find another car dealer who will sell them the same car at the same price but with an interest rate of just 4.8%. they do not live in a state that has a cooling off period for auto loans. what are their options? a. they can tell the original dealer "no deal" and go to the lower-priced lender. b. they signed the contract and must take the original deal that they made. c. the federal government will force the first dealer to lower the interest rate. d. they can sue the original lender to lower the interest rate.

Answer 1

Answer:

Your answer would be B; "they signed the contract with the first dealer and now  must take the original deal."

Explanation:

They already signed the contract with the first dealer and now the only option available to them is to take the original deal since they have already signed the contract meaning they have legal duty to that first dealer. (Legal Duty: a legally binding obligation on a contract to follow the law when doing something towards the other part. Since they have signed it is legally binding that they now take the original deal or the first deal.)