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Chyrsler Historical Buff!!
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From my other life, under the vehicle and traffic laws, modification of a stock exhaust system is not strictly prohibited except if it is noticiably loud, like utilization of Cherry Bomb mufflers or reverse Monza stuff. It also depends on the year of the vehicle, like before inspection laws or "grandfather" clause. However, from the early days of whiskey runners, use of exhaust cut outs IS prohibited. Bypassing the catalyst is also a strict no-no, as would be the removal or modification of any of the air clean up equipment on a engine. Each state is different, however, most are pretty clear about stock systems, through Federal mandates.

If your jurisdiction has vehicle inspection laws, passing the inspection requires that these things are part and parcel of getting your sticker. Hopefully, the inspector would be aware that this is a "stock" exhaust system and not get all hyped about the cut outs. If your state has no vehicle inspection law that doesn't mean you can go out and change that which is used to clean up the air. Like catalysts.

In the case of this particular vehicle, the cut outs are not a modification, as it is built stock that way. But, using them on the street in ear shot of your friendly local neighborhood cop might result in a written invitation to view the local traffic court interior on a guest basis, of course.
 
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