Interpretation ID: nht74-4.35

DATE: 01/02/74

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: University Club Tower

TITLE: FMVSR INTERPRETATION

TEXT: This responds to your December 10, 1973, question whether a dealer violates the Odometer Disclosure Requirements of the Motor Vehicle Information and Cost Savings Act and 49 CFR Part 580 if he simply duplicates the disclosure made to him when he bought the car.

If the dealer acts in good faith in making his disclosure, he is entitled to rely on the disclosure made to him as the basis of his statement. On the other hand, collusion between the dealer and the former owner to knowingly make a false disclosure would violate the Act. Either might be subject to suit and damages if intent to defraud can be shown.

We realize that such a burden of proof is difficult to meet and we suggest that, with regard to the dealer, an alternative remedy might be a report of possible misrepresentation to the state agency that licenses dealers.

YOURS TRULY,

December 10, 1973

U.S. Department of Transportation National Highway Traffic Safety Administration

Attention: Richard B. Dyson, Assistant Chief Counsel

Re: N40-30(TWH)

Thank you for your letter of December 5, 1973 with its enclosed rules and regulations issued by your department.

As you are aware the act states that a purchaser of a used automobile is entitled to rely on the odometer reading unless the seller states that it is inaccurate and the actual mileage is not known. The enforcement provisions of the act state that an inaccurate statement must be made with the intentions to defraud. In my particular case, the dealer has attempted to circumvent this section by obtaining a statement from the person who sold him the automobile in the same wording as the statement he must give his purchaser. In other words, a used car salesman ignores the act completely by acting as a middle man even though he knew or should have known that the mileage was in excess of the odometer reading.

I am aware that this act is so new that there are no reported cases but I would appreciate any assistance you can give me in overcoming this situation and also I wish to make you aware of how the act is being ignored in our area. Please advise me by return mail.

Very truly yours,