Interpretation ID: aiam1144
4315 Aegean Drive
Apartment 230
Tampa
FL 33611;
Dear Ms. Baldwin: This is in response to your letter request of May 8, 1973, fo information on possible dealer liability for a nonfunctional odometer and for failure to make an odometer disclosure statement in connection with your purchase of a 1970 Pontiac Lemans on March 29, 1973.; Title IV of the Motor Vehicle Information and Cost Savings Act of 197 became effective January 18, 1973, and made it unlawful to reset or alter the odometer of any motor vehicle with the intent to change the numers (sic) indicated thereon. It would not be a violation of the Act if either dealer sold the vehicle without repairing the odometer, or repaired the odometer without resetting the mileage prior to sale. If, however, it can be proved that the odometer was reset by either dealer after January 18, 1973, you may have cause of action under 409(a) of the Act for $1,500 or three times the amount of damages you actually sustained.; On March 1, 1973, regulations implementing the Act became effective an made it unlawful for a transferor of a motor vehicle to fail to make an odometer disclosure to his transferee, or to give a false statement in making a disclosure. A signed statement from the transferor to the transferee must be executed prior to the transfer of the vehicle, disclosing the cumulative mileage on the odometer, and indicating that the reading is inaccurate if the transferor knows such to be the case.; Ralph King's may be liable for its failure to make a statement if i could be proved that it knew of the disclosure obligation and purposely failed to make the statement with intent to defraud Crown. The bookkeeper's belief that March 15, 1973, was the effective date would appear to make proof of fraudulent intent difficult.; Crown's mileage statement is deficient in several respects. It was no made prior to the transfer and it was not completed and dated. If Crown bought the car with the odometer still inoperative or with notice of the inaccurate mileage reading, Crown was also required to check the box indicating that the odometer reading was inaccurate.; To obtain a recovery against either dealer under the provisions of th Act for failure to make the required statement or for a false statement, you must prove that the dealer knew of its disclosure obligation and ignored it in an attempt to defraud its transferee.; I am enclosing a copy of the Act and regulations. You may find i advisable to consult an attorney concerning your rights in this matter.; Yours truly, Richard B. Dyson, Assistant Chief Counsel