What is required before a dealer enters into a cash or credit transaction with a customer?

Prior to entering into a cash or credit transaction with a customer, it is essential for a dealer to check the "Blocked Persons" list. This list is maintained for the purpose of ensuring compliance with federal and state regulations that prohibit engaging in transactions with individuals or entities who are restricted from receiving certain services due to legal or regulatory reasons, such as individuals involved in financial crimes or those who have been subject to sanctions.

By consulting the "Blocked Persons" list, dealers can avoid potential legal liabilities and maintain ethical standards in their business operations. This process is vital in protecting both the dealer and the wider community. Ensuring due diligence in this regard helps to cultivate a trustworthy environment and fosters accountability within the industry.

The other options, while potentially important depending on the context and the dealer's internal policies, do not specifically relate to mandatory legal requirements that must be fulfilled before conducting transactions with customers.