One-to-many associations are defined by the maximum multiplicity on each end of the association. The rule of thumb is to go toward the * to post the foreign key. So, in the model above, the primary key of STATE would be a foreign key in AUTO; the primary key of PERSON would be also be a foreign key in AUTO. See Table 1 in Chapter 3 for a listing of posting rules based on multiplicities.
Many-to-many associations require the creation of a new, linking table to implement the association. So, in the model above, the association between DEALERS and AUTO would be implemented with a new table DEALER-AUTO with a primary key formed as the combination of primary keys from the two classes.