Interpretation ID: nht73-3.34

DATE: 02/27/73

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Fildew; Gilbridge; Miller & Todd

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of February 14, 1973, in which you asked about the responsibilities with respect to the motor vehicle safety standards of an automobile dealer who sends a new vehicle to a specialty manufacturer for modifications. You asked whether the dealer must file reports as a final-stage manufacturer, or ascertain whether the specialty manufacturer has filed reports or certified the vehicle.

The final-stage manufacturer in the case you describe is the specialty manufacturer, and all the responsibilities that pertain to that category lie with him, not the dealer. There is also no obligation for the dealer to ascertain that the specialty manufacturer has filed reports.

The answer with respect to the dealer ascertaining that the final-stage manufacturer has certified the vehicle is somewhat less clear. There is no direct responsibility for this; a failure of the final-stage manufacturer to certify would not itself bring down any penalties on the dealer. However, the certification is designed to protect the dealer, in cases of nonconformity with the standards of which the dealer does not have actual knowledge. (See sections 108(b)(2) and 114 of the National Traffic and Motor Vehicle Safety Act, 15 U.S.C. 1397(b)(2), 1403.) To put it negatively, if the vehicle were completed in violation of applicable standards and it were not certified, a dealer might be considered to have sold a nonconforming vehicle without the exercise of due care, in violation of the Act. The question is further complicated by the fact that not all alterations would rise to the level of manufacturing (addition of trailer hitches probably would not, for example), and these minor

changes would not require additional certification by anyone. In sum, although there is no direct legal obligation for the dealer to see that there is a certification where there are major alterations, it is a very good idea, for his own protection.

The regulations on this subject are codified in Parts 567 and 568 of Title 49, Code of Federal Regulations. The October 1, 1972 edition of that title is current with respect to those parts. We do have a proposal outstanding to make some amendments regarding the certification of altered vehicles (37 FR 22800, October 25, 1972), and an amended rule may be issued in the near future.