Opinion ID: 426344
Heading Depth: 2
Heading Rank: 1

Heading: Liability for Dealers' Acts

Text: 45 To begin with, petitioners challenge the sundry regulations that hold vehicle manufacturers responsible for ensuring that warranty repairs are properly and timely made. These regulations require vehicle manufacturers to honor warranty claims, valid or not, if the repair facility does not finish or reject (in writing) such claims within 30 days. See 40 C.F.R. Secs. 85.2106(f), 85.2107(d) (1982). Similarly, they prohibit vehicle manufacturers from denying claims on the basis of any work performed by an authorized facility, id. Sec. 85.2104(h), and subject these manufacturers to fines of up to $10,000 per offense for warranty work that cannot reasonably be expected to allow the vehicle to meet applicable emission standards, id. Sec. 85.2111(b). 46 In our view, these regulations simply ensure that vehicle manufacturers assume the responsibilities the Act places upon them. In Section 207(b) Congress identified the vehicle manufacturer as being responsible for a broad performance warranty. 42 U.S.C. Sec. 7451(b). In Section 203(a)(4)(D) Congress prohibited these manufacturers from failing or refusing to comply with the terms of the warranty with respect to any vehicle. Id. Sec. 7522(a)(4)(D). And in Section 207(d) Congress specifically prohibited such manufacturers from transferring any of their warranty cost to their dealers. Id. Sec. 7541(d). In these sections of the statute Congress made clear that it wanted vehicle manufacturers to assume full responsibility for the performance warranty. The regulations implement this congressional intent. They do not impose vicarious liability on the vehicle manufacturers or make them responsible for activities they cannot control. Rather, they ensure that the vehicle manufacturers will not be able to escape their performance warranty obligations by delegating the repair work to others. 52 So long as vehicle manufacturers choose to authorize others to perform their obligations, they must also be prepared to accept responsibility for the inadequate performance of their delegates. 53 These regulations simply ensure that consumers do not face unreasonable hurdles in bringing their warranty claims and that, when performed, the performance warranty work is adequate. 54 The Act clearly gives EPA authority to make the vehicle manufacturers responsible for their authorized dealers' acts.