49 U.S.C. § 30106 — Rented or leased motor vehicle safety and responsibility

submitted 21 years ago by Pub. L. 109-59 to r/title-49-TRANSPORTATION · 433 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law protects car rental and leasing companies from lawsuits. They aren't liable just for owning a vehicle someone crashes while renting it. But they can still be sued for their own negligence or crimes.

(a) In General. A motor-vehicle owner who rents or leases the vehicle out (or an affiliate of that owner) isn't liable under any state or local law — just because they own the vehicle — for harm to people or property caused by how the vehicle was used, driven, or possessed during the rental or lease. This protection only applies if the owner (or affiliate) is in the business of renting or leasing motor vehicles, and neither the owner nor the affiliate was negligent or committed a crime. (b) Financial Responsibility Laws. Nothing in this section overrides any state or local law that requires a vehicle owner to carry insurance or prove financial responsibility in order to register and drive a vehicle, or that holds rental and leasing businesses liable for failing to meet state insurance or financial-responsibility requirements. (c) Applicability and Effective Date. This section applies to any lawsuit filed on or after this section's enactment date, no matter when the underlying harm, or the conduct that caused it, actually happened. (d) Definitions. "Affiliate" means someone other than the owner who directly or indirectly controls, is controlled by, or shares common control with the owner — "control" means the power to direct that person's management and policies, whether through owning voting stock or in some other way. "Owner" means someone who is a record or beneficial owner, titleholder, lessor, or lessee of a motor vehicle; someone entitled to use and possess a vehicle that is subject to another person's security interest; or a lessor, lessee, or bailee in the vehicle rental or leasing business who has use or possession of a vehicle under a lease, bailment, or similar arrangement. "Person" means any individual, corporation, company, limited liability company, trust, association, firm, partnership, society, joint stock company, or any other entity.

the actual law source: uscode.house.gov ↗public domain

(a)In General.—

An owner of a motor vehicle that rents or leases the vehicle to a person (or an affiliate of the owner) shall not be liable under the law of any State or political subdivision thereof, by reason of being the owner of the vehicle (or an affiliate of the owner), for harm to persons or property that results or arises out of the use, operation, or possession of the vehicle during the period of the rental or lease, if—

(1)

the owner (or an affiliate of the owner) is engaged in the trade or business of renting or leasing motor vehicles; and

(2)

there is no negligence or criminal wrongdoing on the part of the owner (or an affiliate of the owner).

(b)Financial Responsibility Laws.—

Nothing in this section supersedes the law of any State or political subdivision thereof—

(1)

imposing financial responsibility or insurance standards on the owner of a motor vehicle for the privilege of registering and operating a motor vehicle; or

(2)

imposing liability on business entities engaged in the trade or business of renting or leasing motor vehicles for failure to meet the financial responsibility or liability insurance requirements under State law.

(c)Applicability and Effective Date.—

Notwithstanding any other provision of law, this section shall apply with respect to any action commenced on or after the date of enactment of this section without regard to whether the harm that is the subject of the action, or the conduct that caused the harm, occurred before such date of enactment.

(d)Definitions.—

In this section, the following definitions apply:

(1)Affiliate.—

The term “affiliate” means a person other than the owner that directly or indirectly controls, is controlled by, or is under common control with the owner. In the preceding sentence, the term “control” means the power to direct the management and policies of a person whether through ownership of voting securities or otherwise.

(2)Owner.—

The term “owner” means a person who is—

(A)

a record or beneficial owner, holder of title, lessor, or lessee of a motor vehicle;

(B)

entitled to the use and possession of a motor vehicle subject to a security interest in another person; or

(C)

a lessor, lessee, or a bailee of a motor vehicle, in the trade or business of renting or leasing motor vehicles, having the use or possession thereof, under a lease, bailment, or otherwise.

(3)Person.—

The term “person” means any individual, corporation, company, limited liability company, trust, association, firm, partnership, society, joint stock company, or any other entity.

Source credit: (Added Pub. L. 109–59, title X, § 10208(a), Aug. 10, 2005, 119 Stat. 1935.)

history & why it existsrecord from the source credit

2005Enacted · Pub. L. 109-59 · 119 Stat. 1935

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-59 on 2005-08-10.

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