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. the federal government will force the first dealer to lower the interest rate. b. they signed the contract and must take the original deal that they made. c. they can sue the original lender to lower the interest rate. d. they can tell the original dealer
o deal\ and go to the lower - priced lender.

Explanation:

Once they signed the loan papers, they entered into a legal contract. Without a cooling - off period, they are bound by the terms of the signed contract. The federal government won't force the first dealer to lower the rate, and they can't sue to have the rate lowered just because they found a better offer, nor can they back out of the signed deal easily.

Answer:

B. They signed the contract and must take the original deal that they made.