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on the other hand, often sell used cars that they have taken in for tradeand have service facilities.Warranties When selling a vehicle, a dealer gives an implied warrantythat the vehicle is merchantable, unless this warranty is excluded.By offering the warranty of merchantability, the dealer warrants thatthe vehicle is fit for the ordinary purposes for which such vehicles areused. The warranty of fitness for a particular purpose also applies whenyou buy a vehicle based on the seller’s advice that it is suitable for aparticular purpose. Be careful to make sure that these warranties arenot excluded or disclaimed by the dealer.PRE-OWNED VEHICLEMuch information isavailable to help you makedecisions when you areshopping for a pre-ownedvehicle. Where can you findinformation about buyingpre-owned vehicles?Example 4. Ed purchased a used car from a dealer. The dealerwrote “as is” on the sales slip that Ed signed. The car’s transmissionjammed four days later, but Ed had no legal recoursebecause the UCC says that all implied warranties are excluded byexpressions such as “with all faults” or “as is.”Another way some dealers exclude implied warranties is by usingformal printed language on the front or back of the sales slip. The printing,often in special typeface, may state: “The implied warranties ofmerchantability and fitness for a particular purpose are hereby disclaimed.”Implied warranties cannot be excluded when express warrantiesare made, according to the Magnuson-Moss Warranty Act. Somestates do not allow merchants to disclaim or exclude implied warrantiesat all when they sell motor vehiclesto consumers.Another advantage of buying aused car from a dealer is that dealersoften give you a 30-day, 60-day, or90-day guarantee. This express warrantycan be for parts and labor or forlabor only. Sometimes the warrantymay be a 50-50 guarantee, in whichthe buyer pays for half of the partsand labor.The Used Car Rule The FTC’sUsed Car Rule requires all usedcar dealers to place a large sticker,called a Buyer’s Guide , in thewindow of each used vehicle theyoffer for sale (see Figure 16.3). Theguide explains any specific warranty344 Unit 3: Understanding Consumer Law