The American Car Rental Association prepares to fight to maintain status quo of the Graves Amendment.
The Obama Administration released its blueprint to Congress for what they hope will be the next highway program reauthorization bill later this year. Included in the Administration plan is a specific provision that would repeal the Graves Law and its nationwide prohibition on states imposing vicarious liability in the owners of rented and leased vehicles. If enacted, this provision would expose leasing and rental companies to liability based solely upon ownership of a vehicle involved in a claim. In some states, like New York, potential liability is unlimited.