Page 38 - GIADA-June2017-Final 061517

LEGAL RESOURCES

Continued from page 34 this step is sometimes skipped in the sales the case of an unsafe vehicle making sure
where you could be held liable for the process. Insurance coverage should also be no test drives are allowed.
negligent acts of a customer test driv- confirmed and you should consider hav-
ing a vehicle. While the customer is not ing the customer read and sign a test drive In summary, while the law generally may
performing a service for you and hence agreement confirming they will follow all insulate you from liability for someone
there is no employee or agency relation- traffic laws, hold you as the dealer harm- else’s negligence, there are real world ex-
ship, they are considered a “bailee,” which less for their wrongs, and that their own ceptions you need to be aware of and take
just means that you are letting them use insurance is primary. To help protect your precautions against. As always, be safe in-
the vehicle. The first example of how you dealership each test drive should be prop- stead of sorry and always seek competent
could be held liable is if you allow a cus- erly documented and this type of process counsel when applying the law to your spe-
tomer who “by reason of his age or want should be followed. cific set of facts. Prevention is key because
of experience, or his physical or mental whether you are liable or not becomes up
condition, or his known habit of reckless- The second way you could be held liable to the court and litigation, win or lose, is
ness, is incompetent to safely operate the for a test drive is if you knowingly allow very costly.
machine." (Berry on Automobiles (4 ed.), the customer to test drive an unsafe ve-
1022, § 1144). While you would not know hicle and the defect, such as bad brakes, If you would like more information on
of any habit of recklessness, you should al- is found to be the cause of an injury. The this topic please contact me at (404) 483-
ways take the precaution of ensuring the best way to avoid this is to make sure all 1212 or our paralegal, Rick MacLeish, at
customer has a valid driver’s license to in stock inventory goes through a safety (770) 639-0772. Check out our website at
cover the “want of experience.” While this check before allowing anyone to drive it www.cardealerattorneys.com. We offer
sounds simple, you may be surprised that and repair any safety defects found or in discounts for GIADA members. n

36 | GIADA Independent Auto Dealer JUNE 2017