Interpretation ID: 2256y
Nives Ford, Inc.
15690 South Harlem Avenue
Orland Park, IL 60462
Dear Ms. Conrad:
This responds to your letter asking what legal obligations are imposed on car dealers to replace air bags on used vehicles accepted as trade-ins. Your letter explained that your dealership has received, as a trade-in, a 1989 car that had a driver-side air bag as original equipment. According to your letter, the car had been in a crash and the air bag was deployed. Hence, when this car was taken in trade by your dealership, its air bag was not functional. You asked whether any law requires you to replace the deployed air bag with a new air bag before selling the car.
In response to your question, we can advise you as follows: (1) Federal law does not require a car dealer to replace a deployed air bag in a used vehicle; (2) a dealer may be required by State law to replace that equipment, or be liable for failure to do so; and (3) our agency strongly encourages dealers 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.
We will first address the Federal legal issues, since our agency administers the Federal vehicle safety law. The National Traffic and Motor Vehicle Safety Act (the Safety Act; 15 U.S.C. 1381 et seq.) authorizes this agency to issue Federal motor vehicle safety standards applicable to new motor vehicles and new items of motor vehicle equipment. NHTSA has exercised this authority to issue Standard No. 208, Occupant Crash Protection (49 CFR /571.208). Among other things, Standard No. 208 requires that cars be equipped with automatic crash protection. "Automatic crash protection" means that a vehicle is equipped with occupant restraints that require no action by vehicle occupants. The performance of automatic crash protection is dynamically tested, that is, the automatic systems are required to comply with certain injury reduction criteria as measured by test dummies in a barrier crash test at speeds up to 30 mph. The requirement for automatic crash protection was phased-in for passenger cars, beginning with 1987 model year new cars. That phase-in is now completed, and all passenger cars manufactured on or after September 1, 1989 are required to be equipped with automatic crash protection.
Section 108(a)(1)(A) of 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) Because of this statutory requirement, your dealership cannot legally sell or offer for sale a new car equipped with an air bag if you know that the air bag has been deployed.
However, 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." In other words, once the 1989 Chrysler LeBaron described in your letter was sold and delivered to its first retail purchaser, the vehicle was no longer required by Federal law to comply with Standard No. 208.
After the first purchase of a vehicle in good faith for purposes other than resale, the only provision in Federal law that affects a vehicle's continuing compliance with an applicable safety standard is set forth in section 108(a)(2)(A) of the Safety Act (15 U.S.C. 1397(a)(2)(A)). That section provides that:
No manufacturer, distributor, dealer, or motor vehicle repair business shall knowingly render inoperative, in whole or in part, any device or element of design installed on or in a motor vehicle ... in compliance with an applicable Federal motor vehicle safety standard, unless such manufacturer, distributor, dealer, or repair business reasonably believes that such vehicle ... will not be used (other than for testing or similar purposes in the course of maintenance or repair) during the time such device or element of design is rendered inoperative.
In the case of passenger cars equipped with air bags pursuant to Standard No. 208, this section would prohibit any manufacturer, distributor, dealer, or repair business from removing, disabling, or otherwise "rendering inoperative" the air bags, except as needed to make repairs to the car. When any such repairs are completed, the car must be returned to the customer with the air bag capable of functioning at least as well as it was able to do when the car was received by the manufacturer, distributor, dealer or repair business. Any violations of this "render inoperative" prohibition in the Safety Act would subject the violator to a potential civil penalty of up to $1,000 for each violation.
Please note that the "render inoperative" provision does not impose an affirmative duty on dealers to replace equipment that was previously removed by someone else, or to repair equipment that was damaged in a crash. Thus, if your dealership purchases a used car that was originally equipped with an air bag pursuant to Standard No. 208, and the air bag was deployed before your dealership took possession of the car, Federal law does not require your dealership to replace the deployed air bag with a functioning air bag before you resell the car.
Despite the absence of any requirement in Federal law, dealers may still be required by State law to replace deployed air bags, or they may be liable for failing to do so. You should be aware that the individual States have authority to require that used vehicles have certain equipment installed and functioning when the used vehicles are sold. You may wish to contact the State of Illinois to learn if there are any applicable laws or regulations that would apply in these circumstances. Additionally, you may wish to consult a private attorney familiar with the law in the State of Illinois regarding potential liability in tort for your dealership in these circumstances. While such issues are beyond this agency's area of legal expertise, we do note that every State provides for some degree of civil liability for consumer products and repair work. The potential for finding a car dealer liable may be greater when that dealer sells a used vehicle without one of the originally-installed safety systems intact and functional.
As a final note, and in addition to the legal considerations, it is NHTSA's strong policy recommendation that dealers always replace air bags following deployment, unless the vehicle is to be junked. Indeed, we have long recommended the repair, restoration, or replacement of all safety systems that may have been damaged in a crash, including the safety belts and brakes, as well as the air bag systems now being installed in passenger cars.
While air bags are in some respects "supplemental" to safety belts, in that the air bags provide additional protection, the air bags are nevertheless vitally important to the vehicle's overall capability to protect occupants in a crash. Those vehicles are designed so that the air bag will always work, even if the safety belt is not worn; and the safety belt system is designed to work in conjunction with the air bag in serious frontal crashes. Additionally, the consumer information available to the purchaser of the used car described in your letter -- in the vehicle owner's manual, from the carmaker and insurance companies, and from NHTSA and other safety groups -- would identify the car as one equipped with a driver-side air bag. The purchaser may well expect a used car to provide the safety equipment that was provided by the original manufacturer.
In short, from the standpoints of auto safety, dealer risk management, consumer protection, customer relations, and good business practices, NHTSA strongly advocates the replacment of deployed air bags.
I hope this information is useful. If you have any further questions or need additional information on this subject, please feel free to contact Steve Kratzke of my staff at this address or by telephone at (202) 366-2992.
Sincerely,
Stephen P. Wood Acting Chief Counsel
ref:VSA#208 d:l/l9/90