Under the Federal Trade Commission Used Car Rule, how can a vehicle be sold "As Is"?

Under the Federal Trade Commission Used Car Rule, how can a vehicle be sold "As Is"?

• A. By providing a full warranty
• B. With the service contract box on the Buyers Guide unchecked
• C. And the service contract box on the Buyers Guide checked
• D. By offering a limited warranty

Answer: (C)

Under the Federal Trade Commission (FTC) Used Car Rule, a vehicle can be sold "As Is" when the service contract box on the Buyers Guide is checked. This indicates that the vehicle is being sold without any warranties, meaning that the buyer is accepting the vehicle in its current condition and is responsible for any repairs after the sale. When the service contract box is unchecked, it suggests that the seller is not offering any service contract options, but it does not clearly communicate the "As Is" status. In contrast, marking the service contract box provides transparency to the buyer that they are purchasing the vehicle without any guarantees, aligning with the intention of the "As Is" sale. The other options would imply some level of warranty or service that does not fit the "As Is" designation where the seller typically bears no responsibility for the vehicle's condition post-sale. Thus, marking the service contract box checked reinforces the understanding of the transaction's terms.

Under the Federal Trade Commission (FTC) Used Car Rule, a vehicle can be sold "As Is" when the service contract box on the Buyers Guide is checked. This indicates that the vehicle is being sold without any warranties, meaning that the buyer is accepting the vehicle in its current condition and is responsible for any repairs after the sale.

When the service contract box is unchecked, it suggests that the seller is not offering any service contract options, but it does not clearly communicate the "As Is" status. In contrast, marking the service contract box provides transparency to the buyer that they are purchasing the vehicle without any guarantees, aligning with the intention of the "As Is" sale.

The other options would imply some level of warranty or service that does not fit the "As Is" designation where the seller typically bears no responsibility for the vehicle's condition post-sale. Thus, marking the service contract box checked reinforces the understanding of the transaction's terms.