Interpretation ID: nht74-3.41

DATE: 05/09/74

FROM: AUTHOR UNAVAILABLE; Lawrence R. Schneider; NHTSA

TO: Andrew T. Hosoodor

TITLE: FMVSR INTERPRETATION

TEXT: This is in reply to your letter of March 26, 1974, concerning the defect notification campaign involving your 1972 Open Road motor home. You object to Open Road's insistence that you sign an authorization for repair and alteration form which contains a rather comprehensive indemnity and hold-harmless provision.

The NHTSA is without authority to compel the making of any repairs to potentially defective vehicles in the hands of purchasers. Manufacturers are free to make repairs subject to conditions, or to not make them at all. The NHTSA has issued regulations regarding the content of defect notification letters (49 CFR Part 577) but does not consider these regulations to apply to the campaign in question as the campaign was initiated before the regulations become effective.

We have corresponded with Open Road regarding this matter, which was first brought to our attention by another purchaser whose objections were similar to your own. That purchaser signed a modified authorization form with Open Road, who has provided us with a copy which we enclose for your information. Open Road has informed us that the sole purpose of the indemnity and hold-harmless clause to which you object is to protect Open Road from third party claims for unauthorized repairs. A copy of Open Road's letter to use with that representation is enclosed should you wish to undertake further negotiations with the company.

We have notified Open Road that future campaign notification letters must be revised if the company insists on the continued use of the indemnity and hold-harmless provision in its present form. Copies of this correspondence with Open Road are also enclosed.

We appreciate your bringing this matter to our attention.

ENC.