Final answer:
The dealership has likely violated Truth-in-lending laws by providing inaccurate information about the agreed-upon interest rate.
Step-by-step explanation:
The dealership has probably violated Truth-in-lending laws.
Truth-in-lending laws require lenders to disclose accurate and complete information about the terms and costs of credit to consumers. If the dealership initially agreed to a specific interest rate when Martin bought the car, but later tells him that the interest rate will be higher, they have likely violated these laws by not providing accurate and transparent information about the loan terms.
For example, the Truth-in-lending Act (TILA) in the United States requires lenders to provide a written disclosure statement that includes the annual percentage rate (APR), finance charges, and other key terms of the loan. If the dealership fails to provide Martin with this information or changes the terms without proper notification, they would be in violation of the TILA.