Interpretation ID: 77-4.30

TYPE: INTERPRETATION-NHTSA

DATE: 11/08/77

FROM: AUTHOR UNAVAILABLE; Joseph J. Levin Jr.; NHTSA

TO: Great Dane Trailers Inc.

TITLE: FMVSR INTERPRETATION

TEXT: This responds to your July 8, 1977, letter posing several hypothetical questions concerning the responsibility to attach a new label to a vehicle if altered prior to first purchase for purposes other than resale.

Section 108(b) (1) of the National Traffic and Motor Vehicle Safety Act, 15 U.S.C. 1397(b)(1), states that the prohibition against the delivery of a nonconforming vehicle "shall not apply to the introduction or delivery for introduction in interstate commerce of any motor vehicle. . . .after the first purchase of it in good faith for purposes other than resale." You ask at what point in time the "first purchase" is deemed to have occurred. We have taken the position that the purchase is not complete until the vehicle is delivered to the purchaser.

In general, the issuance of title to which you refer in your letter is irrelevant to a determination of whether there is a need for the manufacturer's representative to attach a new label to an altered vehicle, as required by Part 567.7, Certification. Delivery of the vehicle is the point at which the first purchase is complete and the responsibility to attach a new label ceases. We would note that if the issue of vehicle modification is raised and decided upon during the sales conversations we would consider a subsequent modification occurring after the point of delivery to be an event requiring the attachment of a new label.

In particular response to your hypotheticals, paragraphs B and D through H represent occasions when vehicle alterations would result in the need to attach a new label in accordance with the requirements of Part 567.7. The reason for this conclusion is that all of the hypotheticals result in the alteration of the gross vehicle weight rating (GVWR), or gross axle weight ratings (GAWR) or the attachment or removal of non-readily attachable components. There would be no need, in paragraphs B and D, to attach a new label if the vehicle manufacturer had availed himself of the option of listing alternative GAWR's, with appropriate tire sizes, as long as the newly installed tires were among those listed on the certification label.

Paragraphs A and C do not present alteration situations in which the GVWR or the GAWR are affected. Although the tires would have a greater load capacity than that rated on the vehicle label, there is no need to change the rating of the vehicle, as is the case when tires are installed that have lower load capacities. Further, the installation of tires constitutes the installation of readily attachable components. Therefore, there is no need to attach a new label in accordance with Part 567.7 in these situations.