Which of the Following Is True Regarding Federal Regulation of Used-Car

question 48

Multiple Choice

Which of the following is true regarding federal regulation of used-car sales?

• A) Odometer fraud is prohibited.
• B) There are requirements regarding notification that a car is being sold "as is."
• C) The dealer may attach a label providing that no further inspection is needed if the car has already gone through a thorough inspection by the dealer.
• D) Odometer fraud is prohibited; there are requirements regarding notification that a car is being sold "as is;" and the dealer may attach a label providing that no further inspection is needed if the car has already gone through a thorough inspection by the dealer.
• E) Odometer fraud is prohibited and there are requirements regarding notification that a car is being sold "as is," but the dealer is not allowed to indicate that no further inspection is needed.

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Definitions:

Gross Investment

The total amount of money invested in capital assets before accounting for depreciation, representing all new investment in the economy.

Depreciation

The diminishing value of an asset over periods, often as a result of deterioration or becoming obsolete.

Inventory Investment

The purchase of goods and materials that are not currently needed for production but are held for future use, contributing to a company’s assets.

Inventory

The complete list of items such as property, goods in stock, or the contents of a building.