This is not unlike the situation that exists in most other industries, where the businesses are held vicariously liable for the acts of others. There is no rationale or moral basis to single out car rental companies for special immunities. That would not only be wrong but the wrong is compounded by the fact that there is no demonstrable need for such protection from Congress. The current system is working and there is no documented evidence to support a federal override of current state laws governing this area of tort law. Indeed, this proposed bill recognizes that states have the authority to impose financial responsibility laws on car rental businesses.
Vicarious liability is in essence another form of financial responsibility.
States that decide it is in their best interest or good public policy to impose such responsibility should not be prevented from doing so. The courts established the principle of vicarious liability primarily to ensure injured parties recover damages for the harm they have suffered. But vicarious liability laws serve the additional purposes of spreading the risks and costs of doing business throughout a broader community, and of encouraging the sellers or renters of products to monitor those products closely to ensure the safest products possible are available to American families. This bill would gut this fundamental principle for one industry by prohibiting states from holding any car rental agency liable for the harm resulting from a driver's negligent operation of a operation of a rented or leased motor vehicle they own. Those states which have established vicarious liability laws for car rental agencies clearly believe there are strong policy reasons to hold these agencies responsible for any harm involving their vehicles.