[Code of Federal Regulations]
[Title 49, Volume 6]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR573.11]

[Page 1022]
 
                        TITLE 49--TRANSPORTATION
 
                   CHAPTER V--NATIONAL HIGHWAY TRAFFIC
                    SAFETY ADMINISTRATION, DEPARTMENT
                            OF TRANSPORTATION
 
PART 573_DEFECT AND NONCOMPLIANCE RESPONSIBILITY AND REPORTS--Table of Contents
 
Sec.  573.11  Prohibition on sale or lease of new defective and noncompliant motor vehicles and items of replacement equipment.

    (a) If notification is required by an order under 49 U.S.C. 30118(b) 
or is required under 49 U.S.C. 30118(c) and the manufacturer has 
provided to a dealer (including retailers of motor vehicle equipment) 
notification about a new motor vehicle or new item of replacement 
equipment in the dealer's possession, including actual and constructive 
possession, at the time of notification that contains a defect related 
to motor vehicle safety or does not comply with an applicable motor 
vehicle safety standard issued under 49 CFR part 571, the dealer may 
sell or lease the motor vehicle or item of replacement equipment only 
if:
    (1) The defect or noncompliance is remedied as required by 49 U.S.C. 
30120 before delivery under the sale or lease; or
    (2) When the notification is required by an order under 49 U.S.C. 
30118(b), enforcement of the order is restrained or the order is set 
aside in a civil action to which 49 U.S.C. 30121(d) applies.
    (b) Paragraph (a) of this section does not prohibit a dealer from 
offering the vehicle or equipment for sale or lease, provided that the 
dealer does not sell or lease it.

[67 FR 19697, Apr. 23, 2002]