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Section 108

Subsection 108(a) — As Enacted

Sec. 108. (a) No person shall

(1) 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 except as provided in subsection (b) of this section;

(2) fail or refuse access to or copying of records, or fail to make reports or provide information, or fail or refuse to permit entry or inspection, as required under section 112;

(3) fail to issue a certificate required by section 114, or issue a certificato to the effect that a motor vehicle or item of motor vehicle equipment conforms to all applicable Federal motor vehicle safety standards, if such person in the exercise of due care has reason to know that such certificate is false or misleading in a material respect;

(4) fail to furnish notification of any defect as required by section 113.

Conference Report House Report 1919, Page 18

EXEMPTIONS

Section 108(a)(3) of the House amendment makes it a prohibited act to fail to issue a certificate required by section 114 that the vehicle or item of equipment conforms to all applicable Federal safety standards or to issue such a certificate that the vehicle or item of equipment conforms if the person issuing the certificate in the exercise of due care knows or has reason to know that the certificate is false or misleading in a material respect.

Section 108(b)(2) of the House amendment exempts from paragraph (1) of subsection (a) (the prohibition against manufacturing for sale, selling, offering for sale, or introducing or delivering for introduction in interstate commerce or importing into the United States a vehicle or item of equipment which does not meet the Federal safety standards) (A) any person who establishes that he did not know or have reason to know in the exercise of due care that the vehicle or item of equipment is not in conformity with the Federal safety standards, and (B) any person who prior to the first purchase in good faith for purposes other than resale, holds a certificate of conformance issued by the manufacturer or importer unless such person knows that the vehicle or item of equipment does not in fact: conform.

Sections 108(a)(3) and 108(b)(2) of the proposed conference substitute are the same as the House amendment except that in each provision the words “know or” have been deleted so that a person must establish that he did not have reason to know in the exercise of due care either that the certificate was false or misleading or that the Vehicle or item of equipment was not in conformity with the Federal safety standards.

Both the House and Senate managers agree that by this deletion it becomes clear that actual knowledge will remove the defense the provisions give. Thus to avail himself of this defense il person would be required to prove both that he had no knowledge of these faets and that he had no reason to know of these facts in the exercise of due care.

House Passed Act

Congressional Record-House
August 17, 1966, 19671

"Sec. 108. (a) No person shall

information, or fall or refuse to permit entry (1) manufacture for sale, soll, offer for or inspection, as roquired under section 112; sale, or introduce or deliver for introduction “(9) fall to issue a certifcate required by in interstate commerce, or import into the section 114, or issue a cartificate to the effect United States, any motor vehicle or item of that a motor vehicle or item of motor vehicle motor vehicle equipment manufactured on equipment conforms to all applicable Federal or after the date any applicable Federal motor vehicle safety standards, if such permotor vehicle safety standard takes efect son in the exercise of due care knows or bas under this title unless it is in conformity reason to know that such certidcate is false with such standard except as provided in or misleading in a matarlal respect; subsection (b) of this section;

"(4) fail to furnish notiacation of any “(2) fall or refuse access to or copying of dorect as required by section 113. rocords, or fall to make reports or provide

House Debate

Congressional Record-House
August 17, 1966, 19630 and 19631

Mr. SPRINGER.

And what about those who actually , after all precaution and surveillance, build the new cars—what must they do cars do get by and are delivered which under this bill? Taking the steps in have defects, the manufacturer must sequence, the first thing they will do is notify the owner and dealer, if they are cooperate and assist the Secretary of not still the same. Such notice must also Commerce in his deliberations and de- be given to a later owner he has taken cisions about sensible, practical safety over a warranty still in effect. Then the standards. They will not dominate this car builder must remedy the defect. In activity. but they will contribute. Then the case of autos still in the dealer's inof course, they must adhere to the stand tentory, they may be returned or fixed ards when actually building production by the dealer at the expense of the manumodels. Having built one, the manufac facturer. Those in the hands of owners turer must place a certificate in a perma- will be fixed promptly by & dealer. nent fashion which indicates that the Should the manufacturer fall or refuse vehicle does in fact measure up to the to carry out his responsibilities under standards in effect when it was built. these sections, it can be assessed penal. 19631 Records must be kept which can be in

ties of $1,000 per car, and the Secretary spected to determine compliance.

may also seek the help of the courts by

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