Toyota Repair: transmission failure, transmission failure, hydraulic pressure

Question
92 Camry 4 cyl has lost automatic transmission because of fluid loss. Does not respond after refill. A mechanic told me this car has a transmission sensor which will disable it if it runs low on fluid and overheats. Sounds like horsefeathers to me. What do you know about it? I'm headed for the trani shop next. Thanks for your consideration.

Answer
It sounds like a major transmission problem, I'm assuming the car doesn't move even with oil in it is this correct?
Toyota doesn't use the sensor the mechanic is talking about, there is no such thing.
The transmission has electric solenoids that control shifting, but they won't disable if the transmission overheats or runs low on oil. If there is a total loss of hydraulic pressure the problem not a control issue but rather a mechanical problem.