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Interpretation ID: 8765

Ms. Margaret W. Mouzon
Mouzon Information Services
2687 Apple Way
Ann Arbor, MI 48104-1801

Dear Ms. Mouzon:

This responds to your letter of June 4, 1993, requesting information on dealer responsibility for occupant restraint system installation. You asked if a dealer is required to replace a deployed air bag prior to selling a used car. You also asked if the air bag must be operable when a dealer sells a showroom or demonstration model of an "otherwise new" car.

With regard to your first question, I am enclosing two letters that explain legal obligations to replace air bags which have been deployed. The first letter, dated January, 19, 1990, is to Ms. Linda L. Conrad. The second letter, dated March 4, 1993, is to Mr. Robert A. Ernst. As explained in those letters, Federal law does not require replacement of a deployed air bag in a used vehicle. In addition, there is no Federal law that prohibits selling a used vehicle with a supplemental restraint that is inoperable because of a previous deployment. However, our agency strongly encourages dealers and repair businesses to replace deployed air bags whenever vehicles are repaired or resold, to ensure that the vehicles will continue to provide maximum crash protection for occupants. Moreover, a dealer or repair business may be required by state law to replace a deployed air bag, or be liable for failure to do so.

With regard to your second question, section 108(a)(1)(A) of the National Traffic and Motor Vehicle Safety Act (the Safety Act; 15 U.S.C. 1397(a)(1)(A)) specifies that, "No person shall manufacture for sale, sell, offer for sale, or introduce or deliver for introduction in interstate commerce, or import into the United States, any motor vehicle or item of motor vehicle equipment manufactured on or after the date any applicable Federal motor vehicle safety standard takes effect under this title unless it is in conformity with such standard ..." (Emphasis added) Section 108(b)(1) of the Safety Act (15 U.S.C. 1397(b)(1)) provides that the prohibitions in section 108(a)(1)(A) "shall not apply to the sale, offer for sale, or 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." Because of these statutory requirements, a dealership cannot legally sell or offer for sale a new car equipped with an air bag installed to meet the requirements of Standard No. 208, Occupant Crash Protection, if the air bag is not functional. A showroom or demonstration model would be considered a new car, as it has never been sold for purposes other than resale.

I am also enclosing a copy of the information sheet referred to in the two letters discussed above. 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

Enclosures

ref:VSA#208 d:7/21/93