Interpretation ID: nht74-5.20
DATE: 02/21/74
FROM: AUTHOR UNAVAILABLE; Richard B. Dyson; NHTSA
TO: Patrick; Anderson and McDonald
TITLE: FMVSR INTERPRETATION
TEXT: This is in response to your letter of January 30, 1974, requesting information concerning odometer disclosure requirements.
The Federal odometer disclosure regulation requires each transferor of a motor vehicle to furnish to the transferee a written statement signed by the transferor containing the odometer reading at the time of transfer. If the transferor knows the registered mileage to be incorrect, he must include a statement in the disclosure document that the mileage is unknown.
In order for a transferor of a motor vehicle to be subject to the sanctions of the Motor Vehicle Information and Cost Savings Act, the mileage must be incorrectly disclosed with the transferor's knowledge of the inaccuracy.
As you requested, I am enclosing the relevant portions of the Act and the regulation. You also might be interested in the enclosed consumer affairs fact sheet. Responding to your request concerning information that has been provided to the auto industry in general, the National Automobile Dealers Association has been involved in an active campaign to make the auto industry familiar with the Federal odometer requirements. They may be able to provide you with the information you desire.
We would be pleased to answer any further inquiries you may have.
ENCLS.
PATRICK, ANDERSON AND MCDONALD
January 30, 1974
Lawrence R. Schneider, Chief Counsel
National Highway Traffic Safety Administration
Re: U. S. Department of Transportation Rules requiring disclosure of odometer reading and true mileage of automobiles
I have been retained by Jerry R. Freed to represent his son, Daniel E. Freed, in a civil suit brought in the Federal Court for the Northern District of Indiana against McHenry Olds-Cadillac, Inc., a new car dealer, and Walter R. Moon, d/b/a Moon Motor Sales, a used car dealer. (Civil No. 73-S-238).
This civil action was filed under Sub-chapter 4 Odometer Requirements of the Motor Vehicle Information and Costs Savings Act, Public Law 92-213, now incorporated in the U. S. Code at Title 15, and, more specifically, at Sections 1981 through 1990.
Prior to my entry into this case, Mr. Jerry R. Freed, received a letter in response to his many inquiries from the U. S. Department of Transportation, National Highway and Safety Administration, Region 5, at Chicago Heights, Illinois. Enclosed you will find a copy of that letter suggesting further inquiry to you concerning further technical questions regarding this law.
The pertinent facts of this case are as follows:
1. On July 16, 1973, Clara Dale Bennett, bought a new car from McHenry Olds-Cadillac, Inc. and traded in an automobile showing 47,000 miles on its odometer.
2. On August 13, 1973, McHenry Olds-Cadillac, Inc. sold said used car to Moon Motors and presented to Moon Motors an odometer (mileage) statement purportedly signed by Clara Dale Bennett, a copy of which is attached hereto.
3. On August 24, 1973, Moon Motors sold said subject used car to Daniel Lee Freed and exhibited to Mr. Freed the attached odometer (mileage) statement purportedly signed by the original owner, Clara Dale Bennett.
4. Within a few days from this last sale, Daniel Freed noted that the odometer failed to log the miles properly, showing only tenths of a mile and no units or further miles.
5. Three disinterested parties in the used car business have estimated the actual mileage of the subject vehicle to be somewhere between 70,000 and 10,000 miles.
My specific question in regard to these facts is the following:
Is each transferor of an automobile required by(Illegible Word) S. Code Title 15, Section 1988, and the Department of Transportation Rules thereunder, to give a written disclosure of mileage based upon his own personal knowledge and with his own signature?
I would very much appreciate your opinion in regard to this fact pattern as well as a copy of the department's rules in regard to mileage disclosure and copies of any information disseminated to the Auto Sales Industry in general.
Thank you for your time and assistance.
Rett F. Donnelly
Enclosures
cc: Gordon G. Lindquist, Regional Administrator U. S. Department of Transportation; Jerry R. Freed
590.6 DISCLOSURE FORM
ODOMETER (MILEAGE) STATEMENT
FEDERAL REGULATIONS REQUIRE YOU TO STATE THE ODOMETER MILEAGE UPON TRANSFER OF OWNERSHIP. AN INACCURATE STATEMENT MAY MAKE YOU LIABLE FOR DAMAGES TO YOUR TRANSFEREE, PURSUANT TO S 409 (a) OF THE MOTOR VEHICLE INFORMATION AND COST SAVINGS ACT OF 1972, PUBLIC LAW 92-513.)
I, 47000 STATE THAT THE ODOMETER MILEAGE ON THE VEHICLE DESCRIBED BELOW IS
CLARA DALE, BENNETT (CHECK THE FOLLOWING STATEMENT, IF APPLICABLE)
I FURTHER STATE THAT THE ACTUAL MILEAGE DIFFERS FROM THE ODOMETER READING FOR REASONS OTHER THAN ODOMETER CALIBRATION ERROR AND THAT THE ACTUAL MILEAGE IS UNKNOWN.
MAKE: BUICK
BODY TYPE: 2H
YEAR: 67
MODEL: G487
VEHICLE IDENTIFICATION NUMBER: 4948 77H941149
LAST PLATE NUMBER:
STATE:
YR.:
TRANSFEROR'S (SELLER'S) CURRENT ADDRESS:
CLARA DALE BENNETT
DATE OF THIS STATEMENT
ORIGINAL TRANSFEREE (BUYER)