FEDERAL TRADE COMMISSION OFFICIALS ESTIMATE THAT OF THE $40 BILLION SPENT ANNUALLY ON CAR REPAIRS IN THE U.S., $12 BILLION GOES FOR UNNECESSARY WORK. DALLAS, ALONG WITH 17 STATES AND A HANDFUL OF CITIES AND COUNTIES, COMBATS AUTO-REPAIR PROBLEMS WITH SPECIAL LEGISLATION. THE DALLAS AUTO-REPAIR ORDINANCE WAS MODELED AFTER A CALIFORNIA STATUTE AND MAKES IT ILLEGAL FOR MECHANICS TO CHARGE FOR REPAIRS NEVER MADE OR TO MAKE UNNECESSARY REPAIRS; IT ALSO REQUIRES SHOPS TO BUY A $50 LICENSE AND TO PROVIDE CUSTOMERS WITH WRITTEN ESTIMATES, SCHEDULES OF CHARGES, AND DETAILED INVOICES. SINCE THE DALLAS ORDINANCE WAS PASSED, A CHIEF MECHANIC AND THREE ASSISTANTS HAVE HANDLED OVER 10,000 COMPLAINTS, SOME 191 OF WHICH HAVE BEEN SERIOUS ENOUGH TO WARRANT PROSECUTION, WHILE MANY HAVE BEEN SETTLED SATISFACTORILY OUT OF COURT; CITY OFFICIALS ESTIMATE THAT THE FOUR MAN STAFF RECOVERS $3,000 A MONTH FOR CONSUMERS. MANY OF THE CASES REFLECT SHODDY WORKMANSHIP, HONEST MISTAKES, OR SIMPLE MISUNDERSTANDINGS -- AREAS IN WHICH THE LAW IS OF MODEST HELP. ONE-FOURTH OF THE COMPLAINTS, HOWEVER, REFLECT ATTEMPTS TO DEFRAUD CAR OWNERS. WHETHER THE COMPLAINT INVOLVES OUTRIGHT FRAUD OR JUST MERE SLOPPINESS, MOST CASES ARE SETTLED WITHOUT LITIGATION. OFTEN, SHOPS TRY TO AVOID COSTLY, TIME-CONSUMING COURT PROCEDURES BY REDOING FAULTY WORK OR REFUNDING A CUSTOMER'S MONEY. WHEN CHARGES ARE BROUGHT, THE CASES ARE USUALLY TRIED IN MUNICIPAL COURT, WHERE FINES RANGE UP TO $200, AND TWO CONVICTIONS MEAN A LOSS OF A SHOP'S LICENSE. IN INCIDENTS INVOLVING AMOUNTS IN EXCESS OF THIS FIGURE, PROSECUTORS CAN BRING FELONY-THEFT CHARGES IN STATE DISTRICT COURT. PENALTIES IN DISTRICT COURT ARE STIFFER, CALLING FOR MAXIMUM FINES OF $5,000 AND IMPRISONMENT FOR UP TO 10 YEARS. ALTHOUGH THE MAJOR PURPOSE OF THE ORDINANCE IS TO DRIVE DISHONEST PRACTITIONERS OUT OF THE MARKET, THE NEW LAW HAS NOT MET WITH GENERAL APPROVAL FROM THE INDUSTRY AT LARGE. SPECIFICALLY, THE CONTROVERSIAL PROVISIONS REQUIRE MECHANICS TO PROVIDE WRITTEN ESTIMATES AND FORBID THEM FROM CHARGING MORE THAN 10 PERCENT ABOVE THE ESTIMATE WITHOUT FIRST INFORMING THE CUSTOMER. MECHANICS CONTEND THAT SUCH PROVISIONS PREVENT LONG-TIME CUSTOMERS FROM DROPPING OFF THEIR CARS WITH INSTRUCTIONS TO DO WHATEVER IS NECESSARY TO RETURN THEM TO NORMAL FUNCTIONING CONDITION. MECHANICS ALSO CONTEND THAT SUCH REQUIREMENTS FORCE THEM TO OVERESTIMATE IN ORDER TO AVOID MISCALCULATING THE COST OF REPAIRS. NO REFERENCES ARE CITED. (KBL)