Interpretation ID: 5673cmc

Mr. Rob Cohen
Auto Advisory Services
14771 Plaza Drive, Suite A
Tustin, CA 92780

Dear Mr. Cohen:

This responds to your July 22, 2003, letter in which you ask about the liability of a car dealer in selling a used vehicle that had an air bag removed by the previous owner. As explained below, there is no Federal requirement for the dealer to replace the air bag.

In your letter you presented a scenario in which, "a licensed vehicle dealer takes a used vehicle in on trade and places it into inventory. The dealer notices that a custom steering wheel had been installed on the vehicle by a prior owner."The original steering wheel was equipped with an air bag, but the replacement does not have one. You ask about the dealers liability in selling the vehicle and if that liability would be affected by the dealers knowledge of the original equipment.

Under Federal law, a person may not sell or offer for sale any motor vehicle that does not comply with all applicable Federal motor vehicle safety standards. 49 U.S.C. 30112(a).However, this requirement does not apply to the "sale [or] offer for sale of a motor vehicle or motor vehicle equipment after the first purchase of the vehicle or equipment in good faith other than for resale (after first retail sale)." 49 U.S.C. 30112(b).

While the Federal motor vehicle safety standards apply only to new motor vehicles and new motor vehicle equipment, Federal law does limit the modifications that can be made by certain businesses to used vehicles. Manufacturers, distributors, dealers, and repair businesses are prohibited from "knowingly making inoperative" any device or element of a design installed on or in a motor vehicle in compliance with an applicable safety standard. 49 U.S.C. 30122.

The "make inoperative" provision would prohibit a dealer from knowingly disabling safety equipment, such as an air bag, that was installed in compliance with an applicable safety standard. However, the provision does not impose an affirmative duty on dealers or other persons to repair equipment on a used vehicle that was disabled by a previous owner. While Federal law does not require dealers to repair or replace safety equipment made inoperative before they obtained the vehicle, the National Highway Traffic Safety Administration strongly urges such repair, so that the vehicle continues to provide maximum safety protection.

Despite the absence of any requirement in Federal law, State law may require replacement of the absent air bag. You may wish to contact the State in which the dealer is located to learn if there are any applicable laws or regulations. Additionally, you may wish to consult a private attorney with respect to potential liability of the dealer for not replacing the air bag.

I hope you find this information helpful. If you have any further questions please contact Mr. Chris Calamita of my staff, at (202) 366-2992.

Sincerely,

Jacqueline Glassman
Chief Counsel

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