A Debtor May Rescind a Contract Under the Truth in Lending

question 8

Multiple Choice

A debtor may rescind a contract under the Truth in Lending Act:

• A)only if the debtor's home is used as collateral.
• B)only in the instance of a first mortgage on his home.
• C)by way of oral notification to the creditor.
• D)within 30 days after the purchase on credit.

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Definitions:

New Prices

The latest prices for goods or services, updated from previous values due to factors such as inflation, demand, or production costs.

Utility Function

A representation of a consumer's preference ranking over a set of goods and services, quantifying the satisfaction from each possible choice.

Reservation Price

This is another term for reserve price, meaning the lowest price at which someone is willing to sell a good or service.

Tape Recorder

An electronic device used for recording sound on magnetic tape and usually capable of playback.