By CNN's Jeremy Herb, Lauren del Valle and Brynn Gingras from the courthouse
Pecker instructed Dylan Howard to negotiate the terms after Cohen called him to tell him to buy the story.
Cohen said to him: "Don't worry. Im your friend. The boss will take care of it."
He understood that would mean he would be reimbursed by Trump Org or Trump himself.
Earlier Pecker said that Cohen referred to Trump as "the boss."
Steinglass is asking Pecker why he told Trump they should buy the story. "I believed the story was true," he says.
Pecker recalls Cohen told him about paying for the story, saying, "The boss will take care of it."
Steinglass asks Pecker to clarify who "the boss" was? "Donald Trump," he says.
Pecker is now describing receiving a call from Trump while he was at an investors meeting in New Jersey.
Pecker says of the phone call: "When I got on the phone, Mr. Trump said to me, 'I spoke to Michael. Karen is a nice girl. Is it true that a Mexican group is looking to buy the story for $8 million?'"
According to Pecker, Trump said, "What do you think I should do?"
Pecker testified that he said, "I think you should buy the story and take it off the market"
“I believe that when Mr. Trump said that ‘She was a nice girl,’ I believe that he knew who she was," Pecker said.
He felt it'd be "very embarrassing" for Trump and for the campaign, Pecker said.
David Pecker says Karen McDougal's attorney Keith Davidson was one of Dylan Howard's key sources, and that went into the thinking of why they needed to buy the story.
Remember: Davidson also repped Stormy Daniels in her NDA negotiation with Cohen.
Several of the jurors are taking notes as Pecker testifies. They are turning their heads between Steinglass and Pecker as they each speak.
Pecker is testifying that Karen McDougal didn't want the story to be published.
"She said that she didn't want to be the next Monica Lewinsky. She wanted to restart her career," Pecker says.
Pecker is now describing how Michael Cohen told him he wanted to have him buy the McDougal story.
When former editor in chief of the National Enquirer, Dylan Howard, suggested he offer $10,000, which included the entire story, she refused.
Michael suggested we go ahead and try and buy the story, Pecker testified.
At first (Michael) said the story wasn't true, Pecker said. He said ABC was interested in buying the story and a "Mexican group" offered to buy it for $1 million.
Pecker said that Cohen didn't think she wanted to have her story out there.
Pecker says that he had a three-way call that day with former National Enquirer editor Dylan Howard and Michael Cohen.
"Michael Cohen told me be sure to use Signal,” Pecker says.
"Immediately Michael Cohen said, 'It's not true,' which is something he always said," Pecker testifies. But still Cohen at the time said he'd look into it.
Pecker says National Enquirer editor Dylan Howard offered Karen McDougal $10,000 to buy her story, but she refused.
