Opinion ID: 2428959
Heading Depth: 3
Heading Rank: 1

Heading: Heavy Truck Exemption

Text: WBF moved for a directed verdict on the grounds that it was exempt from providing odometer disclosures under the Federal Odometer Fraud Act. WBF relies on 49 C.F.R. § 580.6(a)(1) (1992), which exempts transferors of vehicles with gross vehicle weight ratings in excess of 16,000 pounds from the Act's disclosure requirements. Smith responds with two arguments. First, Smith claims there is a split of authority on whether the heavy truck exemption is valid due to the fact that it was created in regulations promulgated by the National Highway Traffic Safety Administration and not in part of the Act itself. Second, Smith claims even if this court finds the exemption to be valid, WBF waived its exemption by giving the disclosure statement to Smith. Smith is correct in pointing out the federal district courts' split of authority on the validity of the exemption. See e.g., Mitchell v. White Motor Credit Corp., 627 F.Supp. 1241 (M.D.Tenn.1986) (holding the exception valid); Davis v. Dils Motor Co., 566 F.Supp. 1360 (S.D.W.Va.1983) (holding the exemption void). However, this court need not decide the validity of the exemption because, as the trial court correctly ruled, WBF clearly waived any exemption when it issued the disclosure statement in this case. Waiver requires the voluntary relinquishment of a known right. This court has defined waiver as the voluntary abandonment or surrender by a capable person of a right known to him to exist, with the intent that he shall forever be deprived of its benefits, and it may occur when one, with full knowledge of the material facts, does something which is inconsistent with the right or his intention to rely upon it. Ray Dodge, Inc. v. Moore, 251 Ark. 1036, 479 S.W.2d 518, (1972). The trial court ruled that if WBF was not required to issue the odometer statement, it could not voluntarily do so and then claim it was not bound by its voluntary actions. We find no error in this ruling. W.C. Bennett of WBF stated in a deposition that he was aware of the heavy truck exemption and the split of authority on its validity. John Harrison, heavy truck sales manager for WBF at the time in question, stated in a deposition that he was aware of the exemptions from disclosure of odometer statements but that it was WBF's policy to issue a disclosure statement on every vehicle sold, including heavy trucks. Based on these testimonies and the fact that WBF gave Smith an odometer statement when the truck was sold, we conclude WBF made a valid waiver of any right to claim exemption from the Act.