Final answer:
The Federal Trade Commission's Used Car Rule mandates dealers to display the Buyer's Guide on used cars for sale, providing transparency about the vehicle's warranty and condition to protect consumers.
Step-by-step explanation:
Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers prominently and conspicuously display the Buyer's Guide on every used car or light truck offered for sale. This document is also known as the "as is" sticker. The Buyer's Guide must state whether the vehicle is being sold "as is" or with a warranty, and what percentage of repair costs a dealer will pay under the warranty. Additionally, it gives buyers important information about the major mechanical and electrical systems on the car, including some of the big problems to look out for, thereby ensuring that factual claims about the car's performance are checked. This ties into the Federal Trade Commission's role in monitoring advertising to prevent untrue "facts" from misleading consumers, emphasizing the adage Caveat emptor, which means "let the buyer beware."