Interpretation ID: aiam3677
Lane & Mittendorff
26 Broadway
New York
NY 10004;
Dear Mr. Deumler: This is in response to your letter of March 7, 1983 requesting th National Highway Traffic Safety Administration's (NHTSA's) interpretation as to whether the 'transferor' of a motor vehicle may issue a power of attorney to a person, presently in possession of the vehicle, for the purpose of executing the odometer statement on behalf of the owner, as required by the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 1988) and the regulations implementing the same (49 CFR Part 590 (sic)).; Assuming that the power of attorney conforms with all loca requirements NHTSA finds that nothing in the Act or in the regulations thereunder forbids an authorized agent from executing an odometer disclosure statement on behalf of the transferor.; The Motor Vehicle Information and Cost Savings Act and its implementin regulations require that each transferor of a motor vehicle, before executing any transfer of ownership document, furnish to the transferee a signed written statement containing certain information. The 'transferor' is defined by the regulations as 'any person who transfers his ownership in a motor vehicle by sale, gift, or any means other than by creation of a security interest.' Neither the regulations nor the Act address the question of whether an agent may be authorized (through a power of attorney or otherwise) to execute the odometer statement on the transferor's behalf.; The purpose of these requirements, as stated in 49 CFR 580.2, is t provide each purchaser of a motor vehicle with odometer information to assist him in determining the vehicle's condition and value, and to preserve records that are needed for the proper investigation, and the adjudication, or other disposition, of possible violations of the Motor Vehicle Information and Cost Savings Act. The execution of an odometer disclosure statement by a person other than the transferor will not derogate the purpose of the Act to preserve records. Records will be created and preserved whether the transferor or his agent executes the statement. Further, it is NHTSA's opinion that as long as the transferor continues to owe a duty to disclose odometer information (under S1988), and continues to be liable (under SS1988 and 1989) for false or fraudulent representations, and for failures to disclose odometer information, the purpose of the Act, to provide each purchaser of a motor vehicle with that information, will be accomplished.; A number of cases have been decided with respect to this issue. The have determined that, since S1988 establishes requirements and creates liability for only the 'transferor', the agent who, on behalf of the transferor, makes a fraudulent disclosure of, or fails to disclose, odometer information is not liable. The transferor, however, does remain liable. *McGinty v. Beranger Volkswagen, Inc.,* 633 F2d 226 (1st Cir. 1980), *Duval v. Midwest Auto City, Inc., et al.,* 578 F2d 721 (8th Cir. 1978), *Romans v. Swets Motors, Inc.,* 428 F.Supp. 106 (E.D.Wisc. 1977), *Coulbourne v. Rollins Auto Leasing Corporation and Watson*, 392 F.Supp. 1198 (D.Del. 1975). Since the transferor remains subject to the requirements of the Act and implementing regulations and liable for failure to comply, the purpose for which the odometer disclosure law was enacted is satisfied.; Sincerely, Frank Berndt, Chief Counsel