Chapter 1.5Rental Passenger Vehicle Transactions
Section § 1748.50
This law states that if a business tries to prevent a customer from sharing their opinions or reviews about the business in exchange for a refund or any other benefit, that part of the contract is considered invalid and cannot be enforced.
Section § 1795.90
This section defines key terms used in the chapter relating to motor vehicles. It explains who is considered a 'consumer,' covering buyers and lessees who are under a vehicle warranty. A 'manufacturer' includes those who make or import vehicles for sale. A 'dealer' sells new vehicles under a contract with a manufacturer. An 'adjustment program' extends warranties or covers repair costs except for recalls. 'Motor vehicle' defines eligible vehicles, excluding motorcycles and off-road ones. A 'lessee' is someone leasing a car and responsible for repairs. Lastly, a 'service bulletin' is a manufacturer's notice about vehicle performance, shared with a national safety agency.
Section § 1795.91
This law requires car dealers to inform potential buyers and lessees about how to access service bulletins, which are documents describing vehicle defects, although these are not the same as recalls. The notice can be effectively communicated if it's clearly displayed in the showroom. Additionally, dealers need to inform customers about any manufacturer programs that might cover specific repairs if there's a service bulletin related to those issues.
FEDERAL LAW REQUIRES MANUFACTURERS TO FURNISH THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) WITH BULLETINS DESCRIBING ANY DEFECTS IN THEIR VEHICLES. THESE BULLETINS ARE NOT RECALLS.
YOU MAY OBTAIN COPIES OF THESE TECHNICAL SERVICE BULLETINS FROM THE NHTSA, THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER), OR
CERTAIN CONSUMER PUBLICATIONS, WHICH PUBLISH THESE BULLETINS. SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
Section § 1795.92
This law section outlines the responsibilities of vehicle manufacturers when they create a program to adjust or fix issues with their vehicles. First, they need to inform owners or lessees about the program within 90 days, using first-class mail, especially for safety or emission-related problems. The details of these mailed notices must also be sent to the New Motor Vehicle Board. Manufacturers are required to notify their dealers in writing about new programs within 30 days. If a consumer spends money on repairs before knowing about a program, the manufacturer must have a way to reimburse them, telling them if their claim is accepted or denied within 21 days of receiving it. If a repair happened before the customer knew about the program, they can ask for their money back, but they have to file a claim within two years of paying for the repair.
Section § 1795.93
This law makes it clear that the rights and options a consumer or lessee has under other laws are not affected or reduced by the rules in this chapter.
Section § 1899
This law acknowledges that museums often benefit from having items loaned to them but face issues when these loans are for an indefinite or long period and communication with the lender breaks down. The existing Unclaimed Property Law is applicable, but not well-suited for items on loan to museums. Such items often have cultural or historical importance but not much monetary value and might originally be intended for donation. Because lenders frequently become unreachable over time, it's suggested that the title of unclaimed loaned property be transferred to museums. If lenders fail to stay in contact, museums should not bear conservation and storage expenses alone. The state wants to ensure clarity of ownership and suggests having museums officially own unclaimed property to avoid confusion and support public interest.
Section § 1899.1
This section explains the definitions related to museums in California. It specifies what a museum is and details that a museum must be a nonprofit or public agency with educational, scientific, or aesthetic aims. It also defines a lender’s address as the latest one in the museum's records, and clarifies that loans involve property deposits where ownership isn't transferred to the museum. Finally, it states that 'property' includes valuable objects but not specimens meant for scientific research.
Section § 1899.10
This law is about how long you have to get back personal property you loaned to a museum. If you want your property back, you must act within three years after the museum informs you they want to end the loan. Generally, if you haven't contacted the museum about your property in over 25 years, you'll probably lose the right to recover it, and it might be considered as donated to the museum. If someone buys that property from the museum, they get a good title if the museum claims they've gained ownership this way. However, if you never got a notice about the museum wanting to end the loan and you've shown interest in keeping your rights within the last 25 years, you might still get your property back or its value, with interest.
Section § 1899.11
This section explains that museums can choose to report property loans that have been unclaimed for over seven years to the state for handling under the Unclaimed Property Law. Before doing so, museums are required to send a notice to the property owner at least six months and no more than 12 months before reporting. The notice must inform the owner of the institution's intent to terminate the loan and the need to claim their property by a specified date to avoid it being handled as unclaimed property.
Section § 1899.2
This law explains how a museum should notify a lender about matters related to loaned items. If the museum has the lender's mailing address, it must send the notice there and receive proof it was received within 30 days. Without an address, the museum can instead publish a notice in a local newspaper for three weeks. The notice must include the lender's name and address, the loan date, and contact information for the museum. The location of the museum is identified by either the branch where the loaned item is held or its main business address.
Section § 1899.3
This law outlines duties a museum has when accepting a loan of property that's either indefinitely long or more than seven years long. The museum needs to notify the lender in writing about this law. If someone files a claim about the loaned property, the museum must keep records of it for at least 25 years. When someone indicates they want to maintain their interest in the property, the museum must send them a receipt confirmation within 30 days. Lastly, the museum must inform the lender if the property gets damaged or lost.
Section § 1899.4
Property owners loaning items to a museum must promptly inform the museum if they change their address or sell the property. Not doing so might cause them to lose legal rights to their property. Owners can also file a notice with the museum if they want to keep their legal interest in the loaned property, although this notice doesn’t make an invalid or expired claim valid again.
Section § 1899.5
If you want to keep your rights in a piece of property that you've loaned to a museum, you must file a written notice with the museum. This notice must clearly describe the property, provide proof that you own it, and be signed by you or someone authorized to act for you. The museum doesn’t have to keep notices that don’t meet these standards, but they must let you know if they’re rejecting your notice and why. Even if the museum accepts a notice, it doesn’t mean they agree with the accuracy. Additionally, this process isn't subject to public record laws, so your notice is kept private.
Claimant
TO PRESERVE AN INTEREST IN PROPERTY
Section § 1899.6
This law allows museums to take necessary action to conserve or dispose of artwork or objects on loan when there's no written loan agreement saying otherwise. If immediate action is needed to protect the items or others in the museum, or if the item poses a danger, the museum can act without the lender's permission. The museum must try to contact the lender, but if they can't be reached or disagree with the proposed measures, the museum can proceed. After publication of a notice and no response for 120 days, action can be taken. If the museum incurs costs from these actions, they can lien against the property or its sale proceeds, and they aren’t liable if they acted in good faith.
Section § 1899.7
If a museum can't notify a lender by mail about damage or loss of items on loan, they can publish a notice. This must include a warning that if the lender doesn't update their information in writing, they might lose rights to their property. If within three years, someone claims an item, the museum must inform them in writing about the damage or loss. If this happens quickly, the original published notice date counts as when they notified the lender.
Section § 1899.8
This law states that starting from January 1, 1985, you cannot sue a museum for damages related to injury or loss of borrowed property if more than three years have passed since the museum notified the lender or more than ten years have passed since the injury or loss itself, whichever comes first.
Section § 1899.9
This law section explains that museums in California can notify a lender when they want to end a loan of items that were either loaned indefinitely or for more than seven years starting after 1984. If a museum wants to end the loan, they must send a notice to the lender explaining that the institution wants to terminate the loan, and the lender must prove ownership and collect their property. If the lender does not respond promptly, the property is considered a donation to the museum. Additionally, if the property remains with the museum after a loan's specified end date, it automatically becomes an indefinite loan.
Section § 1939.01
This law defines various terms related to car rental businesses in California. A 'rental company' is any business renting passenger vehicles, while a 'renter' is someone who rents such a vehicle for less than 30 days. Specific fees like 'customer facility charges', 'airport concession fees', and 'vehicle license recovery fees' are outlined, explaining how charges are calculated and collected. The law also defines terms associated with rental agreements, including who qualifies as an 'authorized driver', what constitutes a 'damage waiver', and details on 'membership programs' that allow renters to bypass normal rental procedures. Additionally, it explains 'electronic surveillance technology' and how it may be used by rental companies.
Section § 1939.03
This law explains what a renter is financially responsible for if they damage a rental car. Renters can be charged for the car's market value if damaged or stolen, but theft charges only apply if the renter didn't take reasonable care, like securing keys. If vandalism happens after theft, renters aren't liable if they're not to blame for the theft. Renters could also be charged up to $500 for vandalism unrelated to theft, along with fees for towing and storage, and some administrative costs.
Section § 1939.05
This law sets limits on how much a renter can owe a rental car company for vehicle damages. The renter’s liability is capped at the cost of parts and labor for repairs or replacement, plus towing and storage fees. Discounts that the rental company gets must reduce these costs for the renter. The time for repairs is converted into standard eight-hour days to align with rental rates. The company can also charge an administrative fee, but it varies based on repair costs and isn't charged for minimal damages. If you're the authorized driver, you will only be liable for damages up to the renter’s liability cap.
Section § 1939.07
This law section outlines how rental companies in California should handle claims against renters for damages to rental vehicles. It states that claims must reflect the actual loss and should not exceed repair costs unless the vehicle is a total loss. In that case, the claim should not exceed the value typical insurance companies use. If a renter's insurance covers the loss, the rental company must work with the insurance and cannot insist on dealing with the renter alone. Renters are still responsible for any damages not covered by their insurance. Rental companies also cannot claim damages from an authorized driver if they have already recovered the costs from someone else. Finally, this law only applies to the renter's liability to the rental company, not to anyone else's liability.
Section § 1939.09
This section outlines how damage waivers work in car rental agreements. Generally, if you purchase a damage waiver, you're not responsible for damage to the rental car. However, exceptions exist—such as damage caused by reckless driving, driving under the influence, or using the car for illegal activities. Rental companies must clearly explain the terms and costs of these waivers, including that they might duplicate your existing insurance coverage. They are required to provide both oral and written disclosures about this potential duplicate coverage. Companies can charge for damage waivers, but there are limits on how much they can charge, which are subject to annual adjustments based on inflation.
Section § 1939.13
This law makes it illegal for rental car companies in California to force customers to buy extra insurance or services they don't want. The rental company cannot use unfair or deceptive tactics, like refusing to give you the car you reserved or blocking money on your credit card, to pressure you into buying these optional extras.
Section § 1939.15
This law prohibits rental companies from charging your credit card for damages or losses to a rented car unless you specifically give them permission after the damage occurs. Additionally, rental companies are not allowed to use unfair or tricky methods to make you pay for such damages.
Section § 1939.17
Rental companies in California can charge customers a special fee when they rent a vehicle. This fee is called a customer facility charge or an alternative customer facility charge, and it is allowed under specific government regulations.
Section § 1939.19
This law describes what rental car companies in California must do when quoting prices to ensure transparency and avoid unexpected costs for renters. It specifies that rental companies can list separate fees for the rental rate, mandatory charges, and mileage, but can't add unexpected fees. When giving a quote, companies must provide a clear estimate including all mandatory charges and not exceed this estimate unless the renter changes the booking. Renters can be charged for optional services like insurance or accessories if they choose them. Charges can be applied for additional drivers unless they are immediate family or colleagues. If unauthorized drivers use the car, a higher fee may apply. Advertisements must specify any extra charges for fuel, mileage, and other conditions. Renters should not be charged for the time a rental car is delivered or picked up from a non-standard location.
Section § 1939.20
This law says that if a rental company tells you about extra charges following certain rules, they're not breaking the law by leaving those charges out of the advertised rental car price. However, it goes into effect starting July 1, 2024.
Section § 1939.21
This section outlines rules for rental companies when providing car rentals to business customers under special agreements called 'business programs.' These programs involve special rates and terms that differ from those offered to the public. The law defines key terms like 'additional charges,' 'business renter,' and 'qualified business rental.' Rental companies can separately list extra charges for these rentals as long as they provide a total cost estimate excluding charges that are unknown at booking time. Renters have the right to sue for violations, and prevailing parties can recover attorney fees. The terms of this section cannot be waived, meaning no one can set them aside.
Section § 1939.22
This law states that a rental company can only send messages to a renter via electronic means if the renter has agreed to it in their rental or lease agreement. Additionally, renters cannot be denied a rental agreement if they decide they don't want to get communications electronically. The term 'electronically' doesn't include messages sent to a cell phone.
Section § 1939.23
This law outlines when a rental company in California can use electronic surveillance on a rental vehicle. Generally, they can't track the renter using this technology except in specific cases: if the car is reported stolen, missing, or abandoned, or if the car is a part of an AMBER Alert. The company can also use the technology if requested by law enforcement with proper legal documents. The law allows certain technologies for navigational assistance, unlocking, or roadside help, as long as they're not used to track the renter. Companies must keep records of any surveillance technology used in specific cases, but can't use these tools to penalize renters with fines or fees.
Section § 1939.25
If a rental company breaks the rules in this part of the law, a renter can sue them to get compensation and other fair remedies, except for certain sections. The winner of the lawsuit can also have their legal fees and costs paid for by the other side.
Section § 1939.27
Section § 1939.29
This law says that you can't cancel out or ignore most rules in this chapter because doing so would go against what's good for the public. However, there are a few exceptions to this rule that are allowed.
Section § 1939.31
This law section outlines that rental companies can fulfill their disclosure obligations to members of their rental program if they provide certain information before the first rental. The renter must receive written terms and conditions, including mandated disclosures and contact details for updates. At the start of each rental, renters must get a notice about any optional damage waiver choices they previously made or declined and their right to change these choices. However, rental companies still need to make necessary disclosures in other forms, like contracts or advertisements.
Section § 1939.33
If a rental car company in California rents a car to a non-U.S. resident and includes liability insurance, they must accept legal documents, like a lawsuit, on behalf of the renter for accidents in the state. They must then send these documents to the renter within 30 days. Anyone suing has to agree to only claim damages up to the insurance limits. Serving the documents to the rental company counts as proper legal service, and the company is not taking on any extra duties apart from accepting the documents.
Section § 1939.35
If you're renting a 15-passenger van, the rental company must give you a safety advisory from the National Highway Traffic Safety Administration about preventing rollover crashes. You need to sign to confirm you've received it. If the van is rented for business, you also have to make sure only properly licensed employees drive it. A 15-passenger van includes any van originally made for 15 people, unless it has dual rear wheels and weighs over 11,500 pounds.
Section § 1939.37
This law says that rental companies don't have to follow certain rules about checking driver's licenses if they let members access cars without a key, like by using a code or key card, especially if it's at remote locations or outside normal business hours.
Section § 1939.38
This law allows commercial airports in California to control access to the airport and require certain businesses and individuals involved in vehicle renting or sharing to collect a customer facility charge. Companies must get permission from the airport before renting or sharing vehicles there, which includes meeting specific terms and conditions. This doesn’t affect existing rules or agreements made by the state or local governments regarding airport access. These regulations will take effect on July 1, 2024.
Section § 1939.39
Starting July 1, 2024, if you want to list your personal vehicle on a sharing program for rental, you must have a certification proving tax compliance. If you bought the car in California, you need to show that either the sales taxes were paid, you opted to pay taxes from renting income, or you're exempt from those taxes. If the car was bought outside California, a certification must show whether or not any taxes were paid on it. This ensures tax responsibilities are clear and accounted for before the car can be shared for rental purposes.