Final answer:
The violation of arranging financing at an interest rate of 4.5% when the true interest rate was actually 5.99% is a violation of the Truth-in-Lending Act.
Step-by-step explanation:
The violation of arranging financing at an interest rate of 4.5% when the true interest rate was actually 5.99% would be a violation of the Truth-in-Lending Act.
The Truth-in-Lending Act is a federal law that requires lenders to disclose key terms and costs of a loan to borrowers, including the annual percentage rate (APR) which reflects the true cost of borrowing. It is designed to protect consumers from deceptive lending practices and ensure transparency in lending transactions.
In this case, the buyer was misled about the actual interest rate they would be paying, which is a violation of their rights under the Truth-in-Lending Act.