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Interpretation ID: 8746

Mr. William C. Longo
Chief Executive Officer
Ram Off Road Accessories
P.O. Box 63915
Los Angeles, CA 90063

Dear Mr. Longo:

This responds to your letter concerning possible liability involved with marketing a product you manufacture, particularly with respect to installation of the product on vehicles equipped with Supplemental Restraint Systems (SRS), also known as air bags. I regret the delay in responding to your letter. In a June 16, 1993 phone conversation with Mary Versailles of my staff, Troy Wood explained that the products are aftermarket decorative sheet metal accessories that attached to the exterior of vehicles. Your company also makes replacement bumpers for vehicles. As Ms. Versailles explained on the phone, this letter will discuss Federal laws which might be affected by the addition of your products on vehicles equipped with air bags. Potential liability questions should be addressed to a private attorney who is familiar with tort law.

By way of background information, the National Highway Traffic Safety Administration (NHTSA) is authorized under the National Traffic and Motor Vehicle Safety Act (15 U.S.C. '1381 et seq.; Safety Act) to issue Federal motor vehicle safety standards that apply to the manufacture and sale of new motor vehicles and new items of motor vehicle equipment. Section 108(a)(1)(A) of the Safety Act (15 U.S.C. 1397(a)(1)(A)) prohibits any person from manufacturing, introducing into commerce, selling, or importing any new motor vehicle or item of motor vehicle equipment unless the vehicle or equipment item is in conformity with all applicable safety standards. NHTSA does not approve motor vehicles or motor vehicle equipment, nor do we endorse any commercial products. Instead, the Safety Act establishes a "self-certification" process under which each manufacturer is responsible for certifying that its products meet all applicable safety standards.

NHTSA has exercised its authority to establish Standard No. 208, Occupant Crash Protection (49 CFR '571.208). Among other things, Standard No. 208 requires that cars be equipped with automatic crash protection. "Automatic crash protection" means that a

vehicle is equipped with occupant restraints that require no action by vehicle occupants. The performance of automatic crash protection is dynamically tested, that is, the automatic systems are required to comply with certain injury reduction criteria as measured by test dummies in a barrier crash test at speeds up to 30 mph. The two types of automatic crash protection currently offered on new passenger cars are automatic safety belts (which help to assure belt use) and air bags (which supplement safety belts and offer some protection even when safety belts are not used). A new Federal statutory requirement will make air bags mandatory in all cars and light trucks by the late 1990's.

Standard No. 208 applies to new vehicles; therefore, if your products are installed before the vehicle's first purchase for purposes other than resale, the vehicle would have to be certified as complying with all applicable standards, including Standard No. 208, with your product installed. However, as explained in the phone conversation with Ms. Versailles of my staff, we understand your products are intended as items of after-market equipment.

After a vehicle's first purchase for purposes other than resale; i.e., the first retail sale of the vehicle, a provision in Federal law that affects a vehicle's continuing compliance with an applicable safety standard is set forth in section 108(a)(2)(A) of the Safety Act (15 U.S.C. 1397(a)(2)(A)). That section provides that:

No manufacturer, distributor, dealer, or motor vehicle repair business shall knowingly render inoperative, in whole or in part, any device or element of design installed on or in a motor vehicle ... in compliance with an applicable Federal motor vehicle safety standard.

Any violation of this "render inoperative" prohibition would subject the violator to a potential civil penalty of up to $1,000 for each violation. The "render inoperative" provision would prohibit a commercial business from installing your product on a vehicle equipped with an air bag in a manner that would negatively affect the vehicle's compliance with Standard No. 208 or any other safety standard. For example, the installer would have to be careful not to activate a sensor while attaching your product, causing the air bag to deploy.

Please note that the "render inoperative" prohibition would apply to a manufacturer, distributor, dealer, or repair business installing your product, and not to your company as the manufacturer of the product. Also note that the "render inoperative" prohibition does not apply to modifications vehicle owners make to their own vehicles. Thus, Federal law would not apply in situations where individual vehicle owners install your product on their own vehicles, even if the installation were to result in the vehicle no longer complying with the safety standards. However, individual States have the authority to regulate modifications that individual vehicle owners may make to their own vehicles.

I have enclosed an information sheet that identifies relevant Federal statutes and NHTSA standards and regulations affecting motor vehicle and motor vehicle equipment manufacturers, and explains how to obtain copies of these materials.

I hope you find this information helpful. If you have any other questions, please contact Mary Versailles of my staff at this address or by phone at (202) 366-2992.

Sincerely,

John Womack Acting Chief Counsel

Enclosure

ref: 208 d:9/29/93