Final answer:
The FTC Used Car Rule requires dealers to provide a Buyers Guide for each used car, outlining warranties and car systems, with the price reflecting the disclosed problems.
The FTC monitors advertising claims, mandating accuracy in factual statements, and highlighting consumer responsibility with 'Caveat emptor'.
Step-by-step explanation:
As described in the Federal Trade Commission (FTC) Used Car Rule, dealers must display conspicuously on each used car a Buyers Guide. This guide must provide critical information regarding warranties and the systems of the car.
Marvin must understand that used car prices are influenced by the number of disclosed problems by the seller; the more issues disclosed, the lower the selling price may be. He should also be aware of the FTC's role in checking advertising claims, ensuring that any factual claims about the product's performance are accurate, while still allowing for a degree of puffery or exaggeration about the general delight of using the product as long as it is not presenting false facts.
The caveat "Caveat emptor" -- which means "let the buyer beware" -- emphasizes the importance of consumer diligence in the purchasing process.