Note to students: For a better understanding, watch the news reports under "Resources" before answering the questions.

1. What does each of the following companies mentioned in the article do?
a) National Insurance Crime Bureau
b) Carfax
c) CarMax

2. What type of damage does flooding cause to a vehicle?

3. Hurricane Katrina caused flood damage to about 600,000 vehicles in 2005. For what reasons is the number of flood-damaged cars from Hurricane Harvey expected to be greater?

4. Many flood damaged vehicles are labeled as such. Some people who did not have auto insurance try to sell their vehicle without telling the buyer it has been in a flood. List 3 things a buyer can do to ensure the used car they wish to purchase has not sustained flood damage.

5. a) Define the term “buyer beware.”
b) How would you use ‘buyer beware’ when buying a used car?