6. Buck Prescott owns a Big Buck’s Home Goods and Furnishings, a one-stop shopping spot for all your home good and furnishing needs. With the economy in a bit of a downturn, sales have been slow. To combat this Buck decided that the store should begin offering one year, same as cash financing to customers making purchases over $1,000, which allows consumers to make minimum payments each month, with a lump sum due at the end of 12 months, or to pay the whole amount at the end of 12 months,

a) Buck knows he has to provide something in writing to his customers to give them the details of the same as cash deal because but he intends to add in interest at the rate of 29% if any payment is late. Identify what law he needs to follow and identify at least 2 key disclosures required by that Act.

b) Buck is concerned that the financing program could come back to bite the company if too many “dead beats” are given the loans. Before Buck advises his sales associates to only offer the same as cash financing to “clean cut individuals” who wear “nice shoes and clothing”, identify what law Buck should consider, and what legal consequences he could face if he violates this law.