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Section 108

Subsection 108(a) — As Enacted

Src, 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 equip. ment 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 certificate 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 a 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—

"(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) fall 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 certificate to the effect
that a motor vehicle or item of motor vehicle
equipment conforms to all applicable Federal
motor vehicle safety standards, if such per-
son in the exercise of due care knows or 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.

House Debate

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

Mr. SPRINGER.

And what about those who actually build the new cars-what must they do under this bill? Taking the steps in sequence, the first thing they will do is cooperate and assist the Secretary of Commerce in his deliberations and decisions about sensible, practical safety standards. They will not dominate this activity, but they will contribute. Then, of course, they must adhere to the standards when actually building production models. Having built one, the manufacturer must place a certificate in a permanent fashion which indicates that the vehicle does in fact measure up to the standards in effect when it was built. Records must be kept which can be inspected to determine compliance.

If, after all precaution and surveillance, cars do get by and are delivered which have defects, the manufacturer must notify the owner and dealer, if they are not still the same. Such notice must also be given to a later owner if he has taken over a warranty still in effect. Then the car builder must remedy the defect. In the case of autos still in the dealer's inventory, they may be returned or fixed by the dealer at the expense of the manufacturer. Those in the hands of owners will be fixed promptly by a dealer. Should the manufacturer fail or refuse to carry out his responsibilities under these sections, it can be assessed penal- 19631 ties of $1,000 per car, and the Secretary may also seek the help of the courts by

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