Interpretation ID: nht74-3.34

DATE: 08/05/74

FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA

TO: Viola Back

TITLE: FMVSR INTERPRETATION

TEXT: This is in response to your letter of July 15, 1974, inquiring as to penalties available for violation of the odometer requirements of the Motor Vehicle Information and Cost Savings Act.

The Act requires, in part, that a written disclosure of a vehicle's recorded mileage be provided by the seller to the purchaser at the time ownership of a vehicle is transferred. If the correct mileage is unknown, the Act requires a statement to that effect to be furnished in written form to the buyer.

Violation of the disclosure requirement may subject the violator to civil liability where his actions were intended to defraud the purchaser. The Act makes available to the buyer a remedy in the amount of $ 1,500 or treble damages, whichever is greater. To obtain this remedy, section 409 of the Act provides that a private civil action be instituted in State or Federal Court.

There is no provision in the Act specifying that the transferee must obtain a disclosure statement from his transferor. The obligation to execute this disclosure document lies with the transferor alone.

For your information, I have enclosed relevant portions of the Act and the odometer disclosure requirements.

If you have any further questions, please let us know.

ENC.

JULY 15, 1974

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

IN REFERENCE TO OUR FEDERAL ODOMETER LAW, EFFECTIVE MARCH 1973, I WOULD LIKE TO KNOW, WHAT PENALTY, A LICENSED MOTOR VEHICLE DEALER FACES, FOR NON-COMPLIANCE OF SUCH LAW, I.E., HE NEITHER GIVES A PURCHASER OF A VEHICLE SOLD BY HIS DEALERSHIP, A SIGNED ODOMETER FORM, OR, RECEIVES ONE, FROM ANY TRADE-IN, OR OUTRIGHT PURCHASE OF VEHICLES, FROM OTHERS.

VIOLA BECK