Interpretation ID: aiam1191
Southwest Auto Auction Inc.
3400 South Central Avenue
Phoenix
AZ 85040;
Dear Mr. Hoag: This is in response to your letter of July 19, 1973, concernin odometer mileage statements, which questions the circumstances under which the transferor would check the statement indicating that actual mileage differs from the odometer reading. It appears from your examples that the problem arises in the transfer of vehicle ownership to you prior to auction.; The check-off provision is intended to warn the unprofessional buyer t ask for more information when the seller has checked the box indicating that he knows that the recorded mileage is incorrect. Your first example illustrates the case of a seller who considers the recorded mileage to be very low for a car of that age but has no certain information that the mileage is wrong. He should not check the box. Your second example illustrates a seller who has reasonable grounds to know (or perhaps certain knowledge) that the odometer is on its second time around, and he must check the box. The buyer is thereby warned to ask for further information about actual mileage.; Every buyer (including an auto auction) should insist on furthe information when the box is checked, so that it can make an accurate disclosure when it resells the vehicle. In the first example the auto auction would not check the box if the previous owner had not, but in the second example the auto auction would check the box, as the previous owner had and also be prepared to offer the explanation made by the original seller.; Yours truly, Richard B. Dyson, Assistant Chief Counsel