What must a dealer clearly indicate in a customer contract for a vehicle sold "as is"?

Study for the Colorado Sales License Test. Prepare with flashcards and multiple choice questions, each question offers hints and explanations. Get ready for your exam!

Multiple Choice

What must a dealer clearly indicate in a customer contract for a vehicle sold "as is"?

Explanation:
When a vehicle is sold "as is," the dealer must clearly indicate in the customer contract that the sale does not include a guarantee. This term signifies that the buyer is accepting the vehicle in its current condition, without any warranties or promises regarding its performance or condition. By stating that the sale does not include a guarantee, the dealer ensures that the customer understands they are responsible for any future repairs or issues that may arise after the sale. This protects the dealer legally, as it limits their liability regarding defects or problems that the buyer may encounter once the vehicle is in their possession. Making this clear in the contract is essential to reduce misunderstandings and to uphold transparency in the transaction.

When a vehicle is sold "as is," the dealer must clearly indicate in the customer contract that the sale does not include a guarantee. This term signifies that the buyer is accepting the vehicle in its current condition, without any warranties or promises regarding its performance or condition. By stating that the sale does not include a guarantee, the dealer ensures that the customer understands they are responsible for any future repairs or issues that may arise after the sale. This protects the dealer legally, as it limits their liability regarding defects or problems that the buyer may encounter once the vehicle is in their possession. Making this clear in the contract is essential to reduce misunderstandings and to uphold transparency in the transaction.

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