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by rayiner
5141 days ago
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If owners are not liable, what stops the owners of inherently dangerous businesses like car rentals from shielding themselves from the inherent risks created by their activity by having judgment-proof operators operate that risk-creating business? The issue here is not regulation of lobbying. It's the very simple fact that driving a car creates substantial risks that have a price. Someone must pay that price. Owners and operators of dangerous instrumentalities are much more appropriate to bear that price than injured third parties. Owners are much more likely to be able to bear the cost than operators. If you shield owners, than you are practically shifting the burden to the public. I.e. socializing the costs. Yes it's great for small businesses to shift the costs of their profit-making activity to the public. Ms. Fong's ownership of the car gives her the right to profit by renting it. It is fair to link that right with the obligation for risks created by that profit-making activity. |
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The issue is exactly one of lobbying. As the article notes, the auto insurance industry has successfully lobbied to pass the Graves Amendment, which nullifies vicarious liability for auto rental. The article mentions this, and you can read more here: http://codes.lp.findlaw.com/uscode/49/VI/A/301/I/30106
Car rental owners are shielded by this lobbied-for legislation. The only question is whether Ms. Fong will qualify as a rental agency for the purposes of this law.
This is precisely a case where an industry has lobbied for an exemption which may exclude others from competing in said industry. It is a textbook example of regulation preventing disruption of an established industry.