Interpretation ID: aiam1510
Assistant Counsel
Amerace Corporation
245 Park Avenue
New York
New York 10017;
Dear Mr. Vecchio:#This is in reply to your letter of May 17, 1974, wit questions as to the applicability of the National Traffic and Motor Vehicle Safety Act to your operations, and its relationship to a contract provision requested by General Motors (GM) requiring that you certify compliance of the hoses you deliver to it.#Your primary responsibility under the Act is to manufacture brake hoses that conform to 49 CFR S571.106, Motor Vehicle Safety Standard No. 106. On and after September 1, 1974, pursuant to S5.2, *Labeling*, of that standard, each hydraulic brake hose, end fitting, and assembly shall be marked with 'The symbol DOT, constituting a certification' by the hose manufacturer, fitting manufacturer, and hose assembler that each item 'conforms to all applicable Federal motor vehicle safety standards.' Since the symbol is a permanent mark on the product, certification will be furnished to anyone through whose hands it passes, whether or not it is required by S114 of the Act. In our view, the symbol DOT is also a 'certificate' within the meaning of S108(b) (2) since it is the manufacturer's representation of compliance upon which other persons may rely. The contract language suggested by GM is therefore not something required by the Act.#I note however, that the amendment requested by GM is to take effect July 1, 1974, two months before you are legally required to use the DOT mark. With respect to your obligations in the interim: Under S114 and the certification notice published November 4, 1967, (32 F.R. 15444) an equipment manufacturer must certify conformity to 'dealers' and 'distributors' by a label or tag on the item itself or on the container in which it is shipped. Obviously this includes dealers and distributors to whom you sell directly.#We also consider that the manufacturer of a vehicle, such as GM, into which a hose is incorporated is a distributer of brake hoses to whom S114 certification must be provided. Any further requirements specified by GM in your contract would be, of course, purely a matter of contract law.#Because you are required to manufacture hoses to conform to Standard No. 106 you are legally responsible for any violation directly attributable to the manufacturing process, irrespective of any certification provided GM. The question whether that certification relieves GM of liability cannot be answered in the abstract. As of January 1, 1975, Standard No. 106 will also apply to motor vehicles, and we do not interpret S108(b) (2) in this context as relieving a vehicle manufacturer of his obligation to exercise due care. Certainly, at a minimum, GM would be liable for violations attributable to installation.#You have also asked for guidance on the recall provisions of S111 and the notification provisions of S113. The repurchase provisions of S111 come into effect upon a determination by either NHTSA or a manufacturer that there exists either a safety-related defect or a nonconformance. This section is not enforced directly by NHTSA, but affords redress to distributors and dealers in the event a manufacturer refuses to repurchase substandard vehicles or equipment items. Since a S108(b) (2)certificate covers only compliance and is not a guarantee of freedom from safety-related defects, it cannot have been intended 'to pass the expense of recall from GM' to you when S111 is invoked. The S108(b) (2) certificate was intended only to provide protection to certificate holders from civil penalty liabilities. Liability for expenses under S111 or S113 is a contract matter between GM and you.#As for S113, your understanding of Mr. Vinson's remarks is essentially correct. There is a direct notification obligation under S113(a) only upon manufacturers of vehicles and tires. But a S113(e) proceeding can involve any motor vehicle equipment manufacturer as a party, who could be ordered to proceed with a S113(a) notification campaign upon a finding that a safety-related defect or a noncompliance exists. A brake hose manufacturer upon such a finding would be required to provide notification to aftermarket purchasers. If the component is used as original vehicle equipment the vehicle manufacturer would normally also be a party to a S113(e) proceeding and required to furnish notification to vehicle purchasers.#Sincerely,Lawrence R. Schneider,Chief Counsel;