Page 42 - GIADA-April-2018

LEGAL

Be Careful Who’s Driving your Vehicle

Inventory: Document Operating Rules!

By J. Eric Gregory, Attorney, Gregory Law Group, LLC, eric.gregory@thegregorylawgroup.com

It was great meeting you this year at the that if the driver was working when the customer vehicles, revise your manual right
Continuing Education (CE) seminars. accident occurred, the employer is most now! We all know using a cell phone, texting
Now, when I see a car with a dealer tag on likely responsible. If a dealer’s employee while driving and operating equipment are
it, I think of you and the potential liability was driving the car, but not performing extraordinarily distracting, and studies
you may face. For example, yesterday, I saw job-related responsibilities, the dealer may have shown distracted drivers can be as
a young person driving a sports car with a have a defense. dangerous as drunken ones. Therefore,
dealer tag on it. Her cell phone was resting you must prohibit your employees from
on the steering wheel while she either The dealer's liability is often determined by using cell phones and similar devices while
texted, snapchatted or something else that if the employee was on a frolic or detour. A driving any of your vehicles. If an employee
distracted her. frolic is when what the employee is doing needs to use a cell phone or send a text
has nothing to do with his/her job. This message, require them to pull over to a safe
As I’m writing this article, House Bill 673, may provide a dealer with the best chance location and stop. Hands-free devices may
a bill on distracted driving, has passed the of getting out of liability. A detour occurs be used while driving, provided you do so
Georgia House. It must go to the Senate when the employee makes a small deviation safely.
before it becomes law. If it does become from their responsibility or activity as the
law, it’ll require Georgia motorists to use court deems is job-related. For instance, Make sure your employees know you
hands-free technology while driving. Even if an employee is delivering a vehicle and expect them to devote their full attention
without the law, the young lady was driving stops to get gas and a donut, he/she is likely to driving while they’re in your vehicles.
distracted, breaking an existing law and on a detour and the dealer will remain Be sure you can show it’s printed and
putting the dealership at significant risk. liable. The employer is still considered acknowledged in your employee manual.
Here are a few things you should think liable. Similarly, make sure employees, whose
about when it comes to the cars being duties involve the operation of vehicles,
driven with dealer tags, policies in place 2. Don’t Let Family or Friends Drive who may be called upon to operate a
and liability: Inventory vehicle in the course of their job duties,
You should be concerned if you’re letting who may be assigned a demonstrator or
1. You’re Still Liable your family or friends drive vehicles in your receive a citation for a moving violation
When an accident happens due to a driver's inventory. If they get in an accident, you’re or DUI/DWI (whether on or off the job),
negligence, typically the negligent driver most likely to be named in a lawsuit if one report that in writing immediately. Also,
is responsible. It makes sense to hold the develops and you’d likely be liable. I know mandate that any employee whose license
driver accountable because if it wasn’t for of a case where the child of a dealership is suspended or revoked for any reason
their negligence, the accident wouldn’t owner rear-ended a motorcyclist who was must report it in writing to their supervisor
have happened. They’re responsible for severely injured. The resulting jury verdict immediately. Other driving policies should
the damages that occur as a result of put the dealer out of business. If the young include a business purposes only rule,
their negligence. But when the vehicle man drove his own car or one owned by his safe operation rule, reporting of accidents
that causes the accident is owned by a family, the dealership wouldn’t would still immediately, driver’s liability policy, GPS
dealership, the driver may not be the only be in business. The liability you have when tracking of employees driving company
liable party. In many instances, when a others are driving your inventory could be vehicles, test-drive routes and more.
company vehicle is in a crash, it may be huge, so don’t just think of the damages to
the dealer's responsibility to pay for the the physical property (i.e. vehicles), think Don’t set yourself or your business up for
damages as the car is owned by them and of the significant damages such as personal failure! There are several risks you can’t
they’re responsible for what the driver injury or death. shield yourself from as a car dealer, so take
is doing. The law has a doctrine called time to mitigate the ones you can. If you
"respondeat superior," where an employer 3. Update your Employee Policy need help with this issue, drafting your
is vicariously liable for what the employee Manual policy manual or any other automotive-law
does when the employee does it during the If you don’t have rules in your employee need, please don’t hesitate to contact me at
course of the employment. This rule means policy manual related to driving company or eric.gregory@thegregorylawgroup.com. n

40 | GIADA Independent Auto Dealer APRIL 2018