Interesting situation.
1 - Any time someone makes a statement, in this type of scenario, that "it is the law", I would say "Show me that law". This particular dealership presumably has used this ploy hundreds of times. They've trained their people to say this and perhaps quote small portions of the law, taken out of context. I would politely tell them that, since they are familiar with that law, to give me the pertinent information, in the context of our conversation, ie, to start a preliminary price negotiation. Ask them if they have a printed copy of that law IN TOTAL that I could read.
2 - Running your credit report without your specific written permission (in a face-to-face contact) is a very definite violation of credit law under FCRA. There must be a permissible reason for it, and since you have not granted permission, there is no reason for it. File a complaint against the dealership under FCRA.
