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Sale, installation of recalled parts prohibited

November 24, 2010
A ban has been instituted on the sale or lease of motor vehicle equipment that is defective or has been recalled for safety reasons, following recent events surrounding Firestone tires. The federal Transportation Recall Enhancement, Accountability and Documentation Act amends the rules governing tire and automaker safety defect reporting. The act was implemented by the National Highway Traffic Safety Administration. Under the new regulation, it is the dealer's responsibility to stay informed of recall notices, even if none are received. The ban does not apply to new or used equipment which no longer is reasonably suited for its original purpose, such as tires sold with holes drilled in their sidewalls. While dealers should not install recalled parts on new or used inventory or service vehicles, the ban does not apply to the resale of used vehicles that may contain recalled motor vehicle equipment. The regulation also clarifies that dealers may sell or lease recalled vehicles to customers, but cannot deliver them until the safety defects or noncompliance problems are remedied. The restriction on delivery applies to vehicles in a dealer's possession when a safety recall notice is received. Vehicles delivered to customers before a notice is received are not restricted. Defective Firestone tires have been linked to at least 174 U.S. deaths.