Not true especially if sold by a dealer or expressly sold ''as is'' . There is the implied warranty and the Moss warranty act, which are federal laws and could apply. A quick search also shows in Pa used cars are not covered by STATE lemon laws unless the vehicle is still under manufacturers warranty, which this car is.
In this case it appears that the car has a bad transmission and with a Check Engine light it would not pass inspection. So, even if it sold AS IS, the Dealer has some repair responsibilities.
From the website
PA Law Help
Can a dealer sell a car without a warranty?
Yes. New cars are almost always sold with a warranty, but with used cars there is often only a short warranty or no warranty at all. But even if there is nothing in writing, there may be an implied warranty that the car is fit to drive.
When a car is sold "as is," it means that there are no written warranties or implied warranties. However, you may still be able to force the dealer to fix the car:
if the dealer told you things about the car's condition that turn out not to be true, or
if the car has one of the problems listed in the previous section.
Are there any minimum standards that vehicles sold in Pennsylvania must meet?
Pennsylvania law states that every vehicle offered for sale must be roadworthy. It is also illegal for a dealer to sell you a car without informing you of the following problems if the seller knows or should know that they exist:
a cracked or twisted frame
a cracked engine block or head
bad transmission
bad differential
flood damage
the car won't pass state inspection
These rules apply to both new cars and used cars and even to cars that are sold "as is."
Pennsylvania also has a "Lemon Law," but it applies only to new cars that are purchased and registered in Pennsylvania. It gives car buyers special rights when a new car does not measure up to its warranty.