A quotation is a text passage that you copy verbatim from the source.
You use a quotation:
An error in a quotation can be indicated by specifying [sic] immediately after the error;
You are allowed to make a lower case out of a capital letter if the quote is not at the beginning of a sentence.
A quote of less than 40 words is enclosed in "quotation marks" in the running text.
If you do not mention the author leading up to the citation, place the author's name and the year and page number(s) in parentheses.
A quote of 40 words or more is displayed in a stand-alone, indented block, without quotation marks. Above and below the block quote will be a blank line.
Note: In the second example, in the text the title of the book is given in italics. The dot comes before the source reference here because the reference is not a part of the quotation.