Jim Stewart wrote:
I was thumbing through the FAR/AIM last night,
trying to fall asleep and I noticed something
that I couldn't understand.

It appeared (in my half-asleep state) that the
FAR says not to operate an out-of-calibration
transponder at all, and the FAR says to operate
^
Should say AIM
it with altitude reporting off.

On the face of it, the FAR would have the authority
of law behind it. Any clarification?