/* Here is the full text of the Motor Vehicle Information and 
Costs Savings Act regarding odometer fraud. */


15 United States Code

Section 1981- Findings

The Congress hereby finds that purchases, when buying motor 
vehicles, rely heavily on the odometer reading as an index of the 
condition and value of such vehicle;that purchasers are entitled 
to rely on the odometer reading as an accurate reflection of the 
mileage actually traveled by the vehicle; that an accurate 
indication of the mileage traveled by a motor vehicle assists the 
purchaser in determining its safety and reliability; and that 
motor vehicles move in the current of interstate and foreign 
commerce or affect such commerce. It is therefore the purpose of 
this title to prohibit tampering with odometers on motor vehicles 
and to establish certain safeguards for the protection of 
purchasers with respect to the sale of motor vehicles having 
altered or reset odometers.

/* The purpose of all of this is that the U.S. Congress cannot 
act generally in respect to whatever it might want. There must be 
a constitutional basis for the power. The commerce clause is the 
most usual means for Congress to make general business 
regulations.*

Section 1982- Defined terms

As used in this title--

     (1) The term "dealer" means any person who has sold 5 or 
more motor vehicles in the past 12 months to purchasers who in 
good faith purchase such vehicles for purposes other than resale.

/* This definition excludes those who wholesale only; they are 
covered by Section (2). */

     (2) The term "distributor" means any person who has sold 5 
or more vehicles in the past 12 months for resale.

     (3) The term "odometer" means an instrument for measuring 
and recording the actual distance a motor vehicle travels while 
in operation; but shall not include any auxiliary odometer 
designed to be rest by the operator of the motor vehicle of 
recording mileage on trips.

     (4) The term "repair and replacement" means to restore to a 
sound working condition by replacing the odometer or any part 
thereof or by correcting what is inoperative.

     (5) The term "transfer" means to change ownership by 
purchase, gift or any other means.

     (6) the term "title" means the certificate of title or other 
document issued by the Stated indicating ownership.

     (7) The term "leased motor vehicle" means any motor vehicle 
which is leased to a person for a term of at least 4 months by a 
lessor who has leased 5 or more vehicles in the past 12 months.

     (8) The term "auction company" means any person who takes 
possession (whether through consignment or bailment or through 
any other arrangement) of a motor vehicle owned by another person 
for selling such motor vehicles at an auction.

Section 1983- Devices causing odometer to register than true 
mileage driven prohibited

No person shall advertise for sale, sell, use, or install or 
cause to be installed, any device which causes an odometer to 
register any mileage other than the true mileage driven. For 
purposes of this section, the true mileage driven is that mileage 
driven by the vehicle as registered by the odometer with the 
manufacturer's designed tolerance.

Section 1984- Change of mileage indicated on odometer prohibited

No person shall disconnect, rest, or alter or cause to be 
disconnected, reset or altered, the odometer of any motor vehicle 
with intent to change the number of miles indicated thereon.

Section 1985- Operation of motor vehicles with knowledge of 
disconnected or nonfunctional odometer prohibited

No person shall, with intent to defraud, operate a motor vehicle 
on any street or highway knowing that the odometer of such 
vehicle is disconnected or non-functional.


Section 1986- Conspiracy to violate odometer requirements

No person shall conspire with any other person to violate 
sections 1983, 1984, 1985, 1987 and 1988.

Section 1987- Lawful service and repair

(a) Nothing in this title shall prevent the service, repair, or 
replacement of an odometer, provide the mileage indicated thereon 
remains the same as before the service, repair or replacement. 
Where the odometer is incapable of registering the same mileage 
as before such service, repair, or replacement, the odometer 
shall be adjusted to read zero and a notice in writing shall be 
attached to the left door frame of the vehicle by the owner or 
his agent specifying the mileage prior to repair or replacement 
of the odometer and the date on which it was repaired or 
replaced.

(b)(1) No person shall fail to adjust an odometer or affix a 
notice regarding such adjustment as required pursuant to 
subsection (a) of this section.

(2) No person shall, with intent to defraud, remove or alter any 
notice affixed to a motor vehicle pursuant to subsection (a) of 
this section.

Section 1988. Disclosure requirements upon transfer of ownership 
of motor vehicle

(a) Promulgation of rules. /*This section gives the Secty. of FTC 
the right to make regulations.*/

(b) Violation of rules and giving false statements to transferees 
prohibited. No transferor shall violate any rules prescribed 
under this section or give a false statement to a transferee in 
making any disclosure required by such rule.

(c) Acceptance of incomplete written disclosure by transferees 
acquiring ownership for resale prohibited. No transferee, who, 
for purposes of resale, acquires ownership of a motor vehicle 
shall accept any written disclosure required by any rules 
prescribed under this section if such disclosure is incomplete.

(d)(1)(A) Any motor vehicle the ownership of which is transferred 
may not be licensed for use in any State unless the transferee, 
in submitting an application to a State for a title upon which 
such license will be issued, includes which such application the 
transferor's title and, if that title contains the space referred 
to in paragraph (2)(A)(iii), a statement, signed and dated by the
transferor, of the mileage disclosure required under subsection 
(a).

(B) This paragraph shall not apply to any transfer of ownership 
of a motor vehicle which has not been licensed before the 
transfer.

(2)(A) Any motor vehicle the ownership of which is transferred 
may not be licensed for use in any State unless the title which 
is issued by the State to the transferee following such 
transfer--

     (i) is set forth by means of a secure printing process (or 
other secure process);

     (ii) indicates the mileage disclosure required to make under 
subsection (a); and

     (iii) contains a space for the transferee to disclose (in 
the event of a future transfer) the mileage at the time of such 
future transfer and to sign and date such disclosure.

(B) The requirements of subparagraph (A) shall not be construed 
to require a State to verify, or preclude the State from 
verifying, the mileage information contained in the title.

(C) In the case of a transferor to whom title to a motor vehicle 
has been issued by any State and such title is, at the time of a 
transfer of such motor vehicle, physically held by a lienholder, 
nothing in this subsection shall be construed to prohibit for 
purposes of the mileage disclosure requirements of this section 
the use of a written power of attorney (if otherwise permitted by 
State law) in a form, and under reasonable conditions, prescribed 
by rule by the Secretary before Feb. 1, 1989. The rule shall (i) 
ensure disclosure on the power of attorney document of the actual 
mileage by the person exercising the power of attorney in the 
space referred to in paragraph (2)(A)(iii). The rule, consisted 
with the purposes of this Act and the need to facilitate 
enforcement thereof, shall prescribe that the form issued by the 
State to the transferee in accordance with paragraph (2)(A)(i), 
shall prescribe that the person granted such power of attorney 
shall retain a copy of such power of attorney and shall submit 
the original back to the State with a copy of the title showing 
the restatement of the mileage, and may prescribe that the State 
retain the power of attorney and the copy of the title for an 
appropriate period or that the State adopt alternative measurers 
consistent with the purposes of this tile, taking into 
consideration costs to the State. The rule shall not require that 
a vehicle be titled in the State in which the power of attorney 
was issued. The provisions of Section 1990b and 1990c shall apply 
to any person to any person granting or granted such power of 
attorney.
(e)(1) In the case of any leased motor vehicle, the rules under 
subsection (a) shall require written disclosure regarding mileage 
to be made by the lessee to the lessor upon the lessor's transfer 
of ownership of the leased motor vehicle.

(2) Under such rules, the lessor of a leased motor vehicle shall 
provide written notice to the lessee regarding--

     (A) such mileage disclosure requirements, and
     (B) the penalties for failure to comply with them.

(3) The lessor shall retain the disclosures made by any lessee 
with respect to any motor vehicle under paragraph (1) for a 
period of at least 4 years following the date the lessor 
transfers that vehicle.

(4) For purposes of this section, if the lessor transfers 
ownership of an leased motor vehicle without obtaining possession 
of such vehicle, the lessor may, in making the disclosure 
required by subsection (a), indicate on the title the mileage 
disclosed by the lessee under paragraph (1) unless the lessor has 
reason to believe that such disclosure by the lessees does not 
reflect the actual mileage of the vehicle.

(f)(1) The requirements of subsections (d) and (e)(1) respecting 
the disclosure of motor vehicle mileage when motor vehicle are 
transferred or leased shall apply in a State unless the Sate has 
in effect alternate motor vehicle mileage disclosure requirements 
approved by the Secretary. The Secretary may promulgate 
regulations establishing procedures for the consideration and 
approval of such alternate requirements.

(2) The Secretary shall approve alternate motor vehicle mileage 
disclosure requirements submitted by a State unless the Secretary 
determines that such requirements are not consistent with the 
purpose of the disclosure required by subsection (9) or (e), as 
the case may be.

(g) IF any motor vehicle is sold at an auction, the auction 
company which conducts such auction shall establish and maintain 
for a period of at least 4 years following the date of such sale 
the following records:

     (1) The name of the most recent owner of the motor vehicle 
(Other than the auction company) and the name of the buyer of the 
vehicle.

     (2) The vehicle identification number of the motor vehicle 
required under title Vi of this act.

     (3) The odometer reading on the date of which the auction 
company took possession of the motor vehicle.

Section 1989, Civil action to enforce liability for violations

(a) Any person who, with intent to defraud, violates any 
requirement imposed under this title shall be liable in an amount 
equal to the sum of--

     (1) three times the amount of actual damages sustained or $ 
1,500, whichever is the greater; and

     (2) in the case of any successful action to enforce the 
foregoing liability, the costs of the action together with 
reasonable attorney fees as determined by the court.

(b) An action to enforce any liability created under subsection 
(a) of this section may be brought in a United States district 
court without regard to the amount in controversy, or in any 
other court of competent jurisdiction, within two years from the 
date on which the liability arises.

/* This section creates jurisdiction in federal courts. Most 
practitioners will agree that these actions are best brought in 
federal court.*/

/* The remainder of the act is in regards to State enforcement of 
the act.*/