Under what condition can a vehicle be sold "As Is" according to the Federal Trade Commission Used Car Rule?

The "As Is" condition for selling a vehicle, according to the Federal Trade Commission Used Car Rule, allows a seller to state that the vehicle is being sold without any guarantees or warranties about its condition. The correct answer aligns with the provision that requires the service contract box on the Buyers Guide to be checked, which signifies that the vehicle is sold without a warranty and acknowledges that the buyer is accepting the car in its current state. This practice protects both the buyer and the seller, as it clearly communicates that any potential repairs or issues related to the vehicle after the sale will be the responsibility of the buyer.

In contrast, selling a brand-new vehicle would typically come with a warranty, which rules out the "As Is" condition. Negotiating the price of a vehicle does not inherently imply an "As Is" sale either; terms of sale must be explicitly defined in relation to warranties. A verbal agreement from the buyer without any written acknowledgment does not meet the legal requirements established by the FTC for declaring a vehicle "As Is." Therefore, understanding the significance of the Buyers Guide and the service contract box is critical in ensuring compliance with the regulations governing used car sales.