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Interpretation ID: aiam1661

Mr. James B. Steward, Bridges and Collins, Bridges Building, 701 Teal Lake Avenue, Negaunee, MI 49866; Mr. James B. Steward
Bridges and Collins
Bridges Building
701 Teal Lake Avenue
Negaunee
MI 49866;

Dear Mr. Steward: This is in response to your letter of October 23, 1974, commenting o the Federal law requiring execution of an odometer disclosure statement when ownership of a motor vehicle is transferred. You express concern for private individuals, who, being ignorant of the disclosure requirements, are subjected to expensive litigation in defending their failure to provide the necessary document.; The odometer requirements of the Motor Vehicle Information and Cos Savings Act were enacted in an effort to eradicate the occurrence of odometer tampering, by providing safeguards for consumers purchasing used motor vehicles which may have been subjected to an odometer alteration. In its attempt to achieve these ends, Congress ordered that an odometer disclosure statement, executed by the seller, accompany the transfer of ownership of any motor vehicle. The information required to appear on the disclosure form is considered necessary to fully inform the buyer of all facts relevant to the odometer's accuracy that may be within the seller's knowledge.; In order to protect the seller from liability where he fails to fulfil the requirements due only to a lack of knowledge of the law, the relevant provisions specify that intent to defraud must be shown in order to obtain recovery under the Act for a noncompliance.; Ignorance of the law in many situations exposes persons to unfortunat costs and burdens. However, Congress has sought, through the Cost Savings Act, to effect an improvement in the reliability of motor vehicle mileage indications. Protection of buyers from fraudulent representation of a vehicle's odometer mileage demands the enforcement of certain requirements. If a seller is ignorant of the odometer law and fails to provide a disclosure statement he will probably not be subject to liability under the Act since his inaction was not intended to defraud the buyer. Emasculating the law to remove a private seller totally from responsibility for fear he might have to defend his actions would be defeating Congress' intent.; Your suggestion that the disclosure requirements only be applied t private sellers in situations where State law requires odometer mileage disclosure to appear on the Title is unacceptable, since the Federal scheme cannot rely on a State's action for its viability.; For these reasons, we must conclude that although some private seller may incur expense in defending their failure to fully comply with the Federal odometer disclosure requirements, the disclosure provisions should continue to be applicable to all sellers of motor vehicles in order to achieve the results intended.; Yours truly, Richard B. Dyson, Acting Chief Counsel