- The Buyers Guide
- Vehicle Information
- Dealer Information
- Optional Signature Line
- Warranty Information
- What About Service Contracts?
- What Do I Have to Give the Buyer At the Sale?
- Can the Buyers Guide Serve As My Written Warranty?
- What If I Don't Comply?
- Where Can I Get More Information?
Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC's) Used Car Rule. In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. Banks and financial institutions are exempt from the Rule, as are businesses that sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the lessee, or a buyer found by the lessee.
The Used Car Rule applies in all states except Maine and Wisconsin. These two states are exempt because they have similar regulations that require dealers to post disclosures on used vehicles. The Rule applies in the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, and American Samoa.
This booklet defines the Rule's requirements, explains how to prepare and display the Buyers Guide, and offers a compliance checklist.
You must post a Buyers Guide before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. You also must display a Buyers Guide on used vehicles for sale on your lot through consignment, power of attorney, or other agreement. At public auctions, dealers and the auction company must comply. The Rule does not apply at auctions that are closed to consumers.
Previously titled or not, any vehicle driven for purposes other than moving or test driving is considered a used vehicle, including light-duty vans, light-duty trucks, demonstrators, and program cars that meet the following specifications:
- a gross vehicle weight rating (GVWR) of less than 8,500 pounds;
- a curb weight of less than 6,000 pounds; and
- a frontal area of less than 46 square feet.
Exceptions to the Rule are:
- any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate state authority and obtains a salvage certification; and
- agricultural equipment.
A disclosure document that gives consumers important purchasing and warranty information, the Buyers Guide tells consumers:
- the major mechanical and electrical systems on the car, as well as some of the major problems that consumers should look out for;
- whether the vehicle is being sold "as is" or with a warranty;
- what percentage of the repair costs a dealer will pay under warranty;
- that oral promises are difficult to enforce;
- to get all promises in writing;
- to ask to have the car inspected by an independent mechanic before they buy;
- to get a vehicle history report and to visit ftc.gov/usedcars for information on how to get a vehicle history report, how to check for safety recalls, and other topics; and
- to ask for a Spanish Buyers Guide if the sale is conducted in Spanish; and
- to keep the Buyers Guide for reference after the sale.
If you conduct a used car transaction in Spanish, you must post a Spanish language Buyers Guide on the vehicle before you display or offer it for sale.
The Buyers Guide must be displayed prominently and conspicuously on or in a vehicle when a car is available for sale. This means it must be in plain view and both sides must be visible. You can hang the Guide from the rear-view mirror inside the car or on a side-view mirror outside the car. You also can place it under a windshield wiper. The Guide also can be attached to a side window. A Guide in a glove compartment, trunk or under the seat is not conspicuous because it is not in plain sight.
You may remove the Guide for a test drive, but you must replace it as soon as the test drive is over.
At the top of the Guide, fill in the vehicle make, model, model year, and vehicle identification number (VIN). Write in a dealer stock number if you wish.
On the back of the Guide, fill in the name and address of your dealership. Also fill in the name (or position) and the telephone number of the person the consumer should contact with complaints. You may use a rubber stamp or preprint your Guide with this information.
You may include a signature line on the Guide and you may ask the buyer to sign to acknowledge that he or she has received the Guide. If you opt for a signature line, you must include a disclosure near it that says: "I hereby acknowledge receipt of the Buyers Guide at the closing of this sale." This language can be preprinted on the form. The signature line and the required disclosure must appear in the space provided for the name of the individual to be contacted in the event of complaints after the sale.
- The Buyers Guide has two versions: One says "As Is-No Dealer Warranty;" the other says "Implied Warranties Only."
- As Is-No Dealer Warranty. If state law allows it, and you choose not to offer a warranty — written or implied — you must use the "As Is" version and check the box next to the heading "As Is-No Dealer Warranty" on the Guide.
- Implied Warranties Only. In states that limit or prohibit the elimination of implied warranties, you must use the "Implied Warranties Only" version and check the box next to the "Implied Warranties Only" if you don't offer a written warranty.
- Warranty. If you offer the vehicle with an express warranty, you must check the box next to the heading "Warranty" and complete that section of the Guide. Warranties required by state law must be disclosed in this section. Your state Attorney General can tell you about state warranty requirements.
State Law. In some states, use of the "As Is-No Dealer Warranty" Buyers Guide may be legally sufficient to eliminate implied warranties. In other states "as is" sales are allowed only if specific action is taken or certain language is used. For example, some states may require you to eliminate implied warranties by using special language and/or a document other than the Guide.
If you're not sure which version of the Buyers Guide you should use or if you have questions about state requirements, contact the FTC or your state Attorney General's office.
Is the Warranty "Full" or "Limited"?
For a warranty to be considered "full:"
- Warranty service must be provided to anyone who owns the vehicle during the warranty period.
- Warranty service must be provided free of charge when necessary, even for services like removing and reinstalling a system covered by the warranty.
- The consumer must be able to choose either a replacement or a refund if the vehicle can't be repaired after a reasonable number of tries.
- The consumer is not required to take any action to receive service, except to give notice that service is needed. Service must be rendered after notice unless the warrantor can demonstrate that it is reasonable to require consumers to do more than give notice.
- The length of implied warranties must not be limited.
The warranty is considered "limited" if any of these conditions doesn't apply.
What Percentage of Costs Does the Warranty Cover?
Fill in the percentage of parts and labor costs covered by the warranty in the spaces provided. If a deductible applies to repairs made under the warranty, put an asterisk next to the number and explain the deductible in the "systems covered/duration" section. For example, "*A $50 deductible applies to each repair visit."
What Systems Are Covered? For How Long?
There's one column to list the systems covered, and another to list the length of the warranty for each system. In the left hand column, you must specify each system that's covered by the warranty. The Rule prohibits the use of shorthand phrases such as "drive train" or "power train" because it's not always clear what specific components are included in the "power train" or "drive train."
In the right hand column, you must state the length of the warranty for each system. If all systems are covered for the same length of time, you may state the duration once.
What if the Manufacturer’s Warranty Still Applies?
If the manufacturer's warranty hasn't expired, you may disclose this fact by checking the box, "MANUFACTURER'S WARRANTY STILL APPLIES. The manufacturer's original warranty has not expired on some components of the vehicle,” in the Non-Dealer Warranties for this Vehicle section of the Buyers Guide.
If the consumer must pay to get coverage under the manufacturer's warranty, you may not check the "Warranty" box. Such coverage is considered a service contract. However, you may check the "Warranty" box if you pay for coverage from the manufacturer and the consumer doesn't have to pay anything more than the price of the vehicle to get the coverage. If you provide a warranty in addition to the unexpired manufacturer's warranty, explain the terms of your warranty on the Buyers Guide.
Where Should Negotiated Warranty Changes Be Included?
If you and the consumer negotiate changes in the warranty, the Buyers Guide must reflect the changes. For example, if you offer to cover 50 percent of the cost of parts and labor for certain repairs, but agree to cover 100 percent of the cost of parts and labor after negotiating with the customer, you must cross out the "50 percent" disclosure and write in "100 percent." Similarly, if you first offer the vehicle "as is" but then agree to provide a warranty, you must cross out the "As Is-No Dealer Warranty" disclosure and complete the "Warranty" section of the Buyers Guide properly.
If you offer a service contract for repairs, check the box next to the words "Service Contract." However, if your state regulates service contracts as the "business of insurance," you don't have to check this box. Check with your Attorney General or state insurance commissioner to find out if your state regulates service contracts as insurance.
You must give the buyer the original or a copy of the vehicle's Buyers Guide at the sale. The Guide must reflect all final changes. If you include a signature line on your Buyers Guides, make sure the buyer signs the Guide that reflects all final changes.
If you offer a written warranty, or if the manufacturer's warranty still applies, you also must comply with the Magnuson-Moss Warranty Act and other FTC Rules, including the "Warranty Disclosure Rule." The Warranty Act contains provisions that establish consumers' rights with respect to written warranties. For example, the Act prohibits you from eliminating implied warranties when you provide a written warranty.
The Warranty Disclosure Rule requires that you disclose certain information about the coverage of your warranty and consumers' rights under state law. This information must be included in a single document that is clear and easy to read.
The warranty information you provide on the Buyers Guide is not sufficient to meet the requirements of the Warranty Disclosure Rule. Therefore, your written warranty and the Buyers Guide must be two separate documents.
Another federal rule — the FTC's Rule on Pre-Sale Availability of Written Warranty Terms — requires that you display written warranties in close proximity to the vehicle or make them available to consumers, upon request, before they buy.
You also may be interested in A Businessperson's Guide to Federal Warranty Law. It explains the Magnuson-Moss Warranty Act, the federal law governing warranties on consumer products.
What Disclosures Should I Make if I Offer a 50/50 Warranty or Another Type of Split Cost Warranty?
Split cost warranties are those under which the dealer pays less than 100% of the cost for a warranty repair. This type of warranty includes 50/50 warranties where the dealer pays 50% of the cost for a covered repair and the buyer pays the remaining 50%. Another type of split cost warranty is one under which the buyer pays a deductible amount and the dealer pays the remaining cost for the repair.
If you offer a split cost warranty that requires you to pay a percentage of the repair cost for covered repairs, you should include the following disclosures in your warranty document:
- The percentage of the total repair cost you will pay.
- The percentage of the total repair cost the buyer must pay.
- How the total cost of the repair will be determined. For example, your warranty might state: "The total cost of a warranty repair will be the retail price ABC motors charges for the job." As another example, your warranty might state: "The total cost of a warranty repair will be determined by adding the dealer's cost for parts to the labor cost. Labor will be billed at a rate of ________ per hour for the actual time required to complete the repair." As a final example, your warranty might state: "If the work is done by an outside repair shop, total cost of a repair will be the price ABC Motors is charged by the outside shop. If the work is done by ABC Motors, the total cost of the repair will be the same price ABC Motors charges non-warranty customers for the same job."
If your warranty requires buyers to pay a deductible, your warranty document should disclose the deductible amount and the details as to when and under what circumstances the deductible must be paid.
Dealers offering split cost warranties can require that buyers return to the dealer for warranty repairs. If your warranty includes this restriction, however, you should provide an estimate of the total repair cost before work is started. This will allow the buyer to decide whether to approve the repair or have the work done elsewhere.
Where Can I Get Copies of the Guides?
You can download the Buyers Guide from the FTC's Business Center, or you can get Buyers Guides from business-form companies or trade associations. You also can generate them yourself on a computer. However, you must use the wording, type style, type sizes, and format specified in the Rule. You are not allowed to place any other wording or symbols (including logos) on the Buyers Guide. The Guides must be printed in 100% black ink on white paper cut to at least 11" x 7 1/4." These requirements cannot be modified in any way. You may use colored ink to fill in the blanks.
How Am I Doing?
- Do you complete a Buyers Guide properly for each used vehicle offered for sale?
- Do you post the Buyers Guide prominently and conspicuously on each used vehicle you offer for sale?
- If you choose to include a signature line for the buyer's signature, do you include the following required disclosure language:
I hereby acknowledge receipt of the Buyers Guide
at the closing of this sale.
- Do you put the following required disclosure in your sales contract:
The information you see on the window form for this vehicle
is part of this contract. Information on the window form overrides
any contrary provisions in the contract of sale.
- Do you give the vehicle's Buyers Guide or a copy to the purchaser at the time of sale and make sure it states the final negotiated warranty coverage accurately?
- If a sale is conducted in Spanish, do you use the Spanish language Buyers Guide?
- If you offer a written warranty, do you prepare a warranty document that complies with federal law? Is the warranty document available for examination by potential buyers?
Dealers who violate the Used Car Rule may be subject to penalties of up to $46,517per violation in FTC enforcement actions. Many states have laws or regulations that are similar to the Used Car Rule. Some states incorporate the Used Car Rule by reference in their state laws. As a result, state and local law enforcement officials may have the authority to ensure that dealers post Buyers Guides and to fine them or sue them if they do not comply.
If you have questions about the Used Car Rule, contact the FTC and request a free copy of the Rule or staff compliance guidelines for the Used Car Rule; both documents explain some aspects of the Rule in more detail.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
[Note: Edited January 2022 to reflect Inflation-Adjusted Civil Penalty Maximums.]
Your rights when buying a used car from a dealership
If you've bought a used motor from a dealership, you have the right to return the car within the first 30 days of purchase.
Consumer Rights Act 2015
You'll have to prove the fault was there when you bought the car, which can sometimes be tricky, but you can ask for a repair or a full refund if the fault was there already. Give the car a proper inspection on arrival and be sure to get confirmation of any faults or flaws in writing.
If you've bought a used car that turns out to be faulty, then you are covered by the Consumer Rights Act 2015. This means that you are entitled to a full refund if you take the car back to the dealer within 30 days of purchase if you can prove that the fault was already there when you purchased the car.
You must complete four different parts of the preprinted Buyers Guide: (1) Vehicle information; (2) warranty information; (3) servce contract availability; and (4) dealer identification and consumer complaint information.
You have a right to reject something faulty and you're entitled to a full refund within 30 days of purchase in most cases. After 30 days, you lose the short-term right to reject the goods. You'll also have fewer rights, such as only being able to ask for a repair or replacement, or a partial refund.
If you have bought a 'lemon' from a dealership, what are your rights if you want to reject the car? According to Section 56 (2) of the Consumer Protection Act (CPA), the consumer has the right to return a vehicle to a seller within a 6-month period under certain conditions.
If you have a non-running car, you are probably wondering, “Can you trade in a car with a bad engine?” The simple answer is yes, you can. While a used car dealership will allow you to trade in your broken vehicle, you won't be taking home a large check at all.
Whether you have rushed into your agreement or you've found a better deal elsewhere, you should be able to cancel your car finance agreement for up to 14 days after you signed on the dotted line. This two-week period is known as a 'cooling off period'.
If a problem is found after 30 days, but within six months of purchase, you can request a repair or a replacement vehicle. The onus is on the seller of the car to prove the fault wasn't present when it was sold; if they can, and you're likely to have known about it, you won't get a refund.
When goods are “sold as seen”, it generally means that the goods are sold in their existing condition and no representation is given in respect of quality. The words “without warranty” would suggest the seller is providing no warranty as to the quality or fitness for purpose of the goods.
All agreements come with a 14-day car finance cooling-off period, which means you have a legal right to withdraw from the arrangement or cancel it within the first 14 days of signing the contract. To cancel your credit agreement within the 14-day cooling-off period, you need to contact the lender directly.
You can ask for the seller to pay for any repairs. You can cancel the agreement, return the vehicle, and ask for your money back. Act immediately if you want to pursue this option. If you wait, it gets more difficult to prove that a fault is the cause of any problem, and not just normal wear and tear.
Buyer's guides are core content types for many marketers for a good reason; when done right, buyer's guides provide uniformity, reliability and transparency. Buyer's guides also consistently allow marketers to engage directly with consumers without having their message diluted or product reputation muted.
While writing buyers guide, remember that the tone of the guide should be friendly, helpful and interesting enough to keep the readers engaged till the end. To make your buying guide work, create content that is SEO friendly. Provide keywords that are frequently used by customers while looking for a product.
(a) The insurer shall provide to all prospective purchasers a Buyer's Guide and a Policy Summary prior to accepting any applicant's initial premium deposit, unless the policy for which application is made contains an unconditional refund provision of at least 10 days or unless the Policy Summary contains such an ...
Does a dealer/seller have to declare an accident? Yes and no. If the dealers are aware that the vehicle has been in an accident, then they are committing an offence by not passing on this information to the buyer.
If you buy a car from a main dealer under a manufacturer's approved-used scheme, you should expect a reasonably comprehensive warranty to be included in the sale price. This will typically last for 12 to 24 months, depending on the manufacturer.
It is still possible to sell your car without fixing the problems, but it can be challenging and can limit who you can sell it to. If your car isn't running, for example, it's highly unlikely you'll be able to sell it to a private buyer, which limits you to traders and mechanics.
Any licensed dealer must offer the buyer of a used car (that costs $40,000 or less) the option to purchase a 2-day cancellation before signing the contract. If you purchase the option, you have the right to cancel the sale within two days for any reason.
If you've purchased a new or used car and have second thoughts about it, you usually won't be able to return the car. The dealer who sold you the car is typically not legally obligated to take the car back and issue you a refund or exchange after you've signed the sales contract. There are some exceptions to this rule.
Can a car dealer back out of a deal? In short, yes, a dealer can back out of a contract but only during specific time frames and scenarios. Also, their opportunity to do so is brief, and you're protected by laws should they attempt to take advantage of you.
He will check the odometer's operation, engine idle, acceleration, brakes, alignment, and the overall handling of your vehicle. Most test drives last 3 to 5 miles or at least one click of the odometer. Some used car appraisers are great at what they do and have a set route they take every vehicle through.
It is always a good idea to get a car wash and clean your car out before bringing it in. You don't need a professional detailing but a little car wash goes a long way because it shows the dealer you take good care of your car and they can better trust the condition of it at first glance.
It is possible to trade in a vehicle with the check engine light on. However, many dealerships will insist on trying to determine why the engine light is on before they make an offer on the car. If they discover a serious issue with the engine, you could receive much less for your vehicle than you were hoping for.
The federal cooling-off rule
You may have heard there's a three-day cooling-off period for some purchases, but in most cases, it doesn't apply to vehicles.
In general, the end of the month is, indeed, the best time to buy a new car from a dealership. Even better, you might want to consider buying a car at the end of a quarter — either March, June, September or December.
14 days is the absolute minimum cooling-off period that a seller must give you. Make sure you check the terms and conditions in case they've given you more time to change your mind - many choose to do so.
- Consumer's rights to enforce terms about goods.
- Right to reject.
- Partial rejection of goods.
- Time limit for short-term right to reject.
- Right to repair or replacement.
- Right to price reduction or final right to reject.
The lender will resell the vehicle, and the proceeds will go toward the balance you still owe on the loan. If there is still a balance remaining after the sale and you don't pay it, it could be turned over to a collection agency. This may result in a collection account being added to your credit history.
To report to Trading Standards, you need to contact the Citizens Advice consumer service. We'll pass your report to Trading Standards and we can also give you advice about your problem. You can: use our online form - we'll get back to you within 5 days.
If you're selling your car privately, you should provide the buyer with a receipt with as much information as possible including the names of the buyer and seller, address of both parties, the date, amount paid, registration plate, VIN number and both parties' signatures.
As a private seller, you must accept a return if the item was not as described in the product listing. So for example, if you said something was new, and it had 11 Page 13 clearly been used you would need to pay for return costs and refund the cost of the item.
However, according to Trading Standards, no vehicles can legally be 'sold as seen'. As you are selling a car under a legally-binding contract, adding 'sold as seen' or 'no refunds' to an advert provides no legal protection to you as a seller.
A voluntary termination of a car finance agreement can indeed appear on your credit file. However, it's not likely to have any impact on your credit score, or your ability to get finance in the future. If you can't keep up with your monthly car finance repayments, you might be tempted to simply stop paying.
Voluntary repossession allows you to return a car you financed without being subject to the full repossession process. This could spare you some credit score damage, though a voluntary repo could still be reported to the credit bureaus.
You can end your existing agreement by paying the settlement figure. You can usually find your settlement figure on your finance agreement or you can contact the lender directly to find out how much it'll cost to settle your loan in full.
- Have the car inspected. ...
- Test drive the vehicle adequately. ...
- Never buy sight-unseen. ...
- Check the title before you shake hands. ...
- Read and understand the purchase agreement. ...
- Know who you are buying from. ...
- Never buy a car premised on repairs being made after delivery.
The only legal terms that cover a private sale contract are: The seller must have the right to sell the car. The vehicle should match the description given by the seller. The car must be roadworthy – it is a criminal offence to sell an unroadworthy car.
That information might include:
- Price. ...
- Dimensions. ...
- Materials. ...
- Generic characteristics. ...
- Product-specific functionality. ...
- “Vs.” comparisons.
No. If you offer a written warranty, the Buyers Guide can't serve as your warranty. The warranty and related disclosures must be a separate document from the Buyers Guide. Consult the FTC's Warranty Disclosure Rule for more information.
Buyer's Guide is owned and operated by parent company Wickfire LLC, a leading digital marketing company focused on search marketing, working with partners on the pay-for-performance model. Since 2011, Wickfire has helped more than 100 million users search for products, services, and discounts online.
How much lower than the asking price can I offer? Again, this depends on the market and how many buyers are interested in the property. But as a general rule, it's considered acceptable to offer 5-10% lower than the asking price.
The success of an offer will always depend on the market and other competing offers, but most experts suggest making an offer 5-10% lower than the guide price. While some sellers may consider offers as much as 15% lower, other sellers may consider this a "cheeky offer," and you run the risk of being seen as rude.
In summary, guide prices are certainly open to negotiation. The price you end up paying will usually depend on local factors, including the level of supply and demand.
Your buyer's guide content should: Highlight the features and details of your product or offer. These are great for items that have a lot of specific features that might help make the sale. Teach your audience how to use your product or offer.
This consumer guide for persons contemplating purchasing or applying for an insurance policy includes important policy information needed to compare insurance policies from different insurance companies.
-Insurers must provide a buyer's guide to all prospective policy applicants prior to accepting their initial premium. -If the policy contains an unconditional refund provision of at least 10 days (free-look period), a buyer's guide can be delivered with the policy.
If you've purchased a new or used car and have second thoughts about it, you usually won't be able to return the car. The dealer who sold you the car is typically not legally obligated to take the car back and issue you a refund or exchange after you've signed the sales contract.
Federal Cooling-Off Rule
The Federal Trade Commission's “cooling-off” rule — established in the 1970s — allows consumers three days to cancel a transaction. This rule often gets tossed around if a consumer wants to return a car they just bought.
If you signed for the car but you haven't driven it and want to back out, call your state's attorney general or consumer protection bureau. Tell them you haven't taken delivery of the vehicle and ask if you can rescind the contract.
You automatically get a 14-day 'cooling-off period' when you buy something you haven't seen in person - unless it's bespoke or made to measure. The cooling-off period starts the day after you receive your order, and there doesn't need to be anything wrong with the item for you to get a refund.
If you return the car to the lender, the lender will likely sell it. It will apply the proceeds of the sale to your car loan balance, after reimbursing itself for the costs of sale and certain fees.
Can you drive home a car you just bought? Yes, but only if you have insurance. It is a legal requirement that you are insured to drive your new car at any time, even just to bring it home.
- Checking and replacing your spark plugs. ...
- Rotating, balancing, and aligning your tires. ...
- Replacing the engine air filter. ...
- Replacing the cabin air filter. ...
- Last, but not least: battery, oil, fluids, and serpentine belts.
But Quebec gives you two days to back out of a sales contract with a new or used dealer – but only if you took out an auto loan through the dealer as part of the sale. If you bought with cash or through a personal loan, you're out of luck.
You might have heard there is a federal cooling-off rule for some purchases. There is such a rule, but it is primarily meant to protect consumers from high-pressure door-to-door sales tactics. It explicitly doesn't apply to automobiles. In other words, if you signed the sales contract, you own the car.
Unfortunately, you probably can't back out of your car loan. Many people cite the Federal Trade Commission (FTC) Cooling-Off Law as a way to get out of a car loan if you cancel before 72 hours. However, the FTC law specifically prohibits this in the case of car loans.
“No, you probably cannot take the car back because of buyer's remorse. When you sign the loan for a new car, it's just like any other contract in that it's legally binding. Unless your car falls under your state's lemon laws, you're stuck with it.
In general, once a contract is signed it is effective. In most situations, you do not have a time period where you have a right to rescind a contract. There are a few exceptions to this general rule. The Federal Trade Commission (“FTC”) has a 3 day, or 72 hour, cooling off period rule.
Your legal rights to a refund
You have 30 days to return faulty goods and receive a full refund. You're entitled to ask for a refund or price reduction after one failed attempt by the retailer to repair or replace a faulty item. Or you can request another repair or price reduction at no extra cost.
When a corporation files a registration with the SEC in an effort to sell shares to the public, that information must be reviewed. During this time of review known as the cooling off period no sales may be made and no checks can be accepted from investors.