ANSWERS: 2
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The laws would depend on where the transaction actually takes place. If a mexican citizen comes over to the US to buy a car with american money, then the transaction is subject to american taxes and the title transfer process. Likewise, if you drove to mexico to sell the car, then you would probably do the transaction in Mexican money and it would be subject to mexican laws.
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A Mexican can not legally bring a US-plated car into Mexico. That's not to say it isn't done all the time, but it is extremely difficult for a Mexican to legalize an illegal car once it is there. And if a Mexico is going to break the law by bringing the car into Mexico, I wouldn't think he'd be too worried about whether it has had the proper smog checks.
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