Under the Federal Trade Commission Used Car Rule, how can the terms of the warranty be modified?

Under the Federal Trade Commission Used Car Rule, how can the terms of the warranty be modified?

• A. They cannot be changed
• B. They can be noted on the original Guide or on a new Guide
• C. They must be discussed verbally
• D. They must be printed on the sale agreement

Answer: (B)

The Federal Trade Commission Used Car Rule provides guidelines for how used car dealerships must disclose warranty information. If the terms of the warranty need to be modified after the original terms are provided to the consumer, they can be documented either on the original Buyers Guide or on a new Buyers Guide. This flexibility ensures that consumers are made aware of any changes in warranty terms in a clear and accessible manner, promoting transparency and informed decision-making. The emphasis on written disclosure aligns with the rule's goal of protecting consumers by making sure they receive accurate and complete information about the vehicle they are considering purchasing.

The Federal Trade Commission Used Car Rule provides guidelines for how used car dealerships must disclose warranty information. If the terms of the warranty need to be modified after the original terms are provided to the consumer, they can be documented either on the original Buyers Guide or on a new Buyers Guide. This flexibility ensures that consumers are made aware of any changes in warranty terms in a clear and accessible manner, promoting transparency and informed decision-making. The emphasis on written disclosure aligns with the rule's goal of protecting consumers by making sure they receive accurate and complete information about the vehicle they are considering purchasing.