MANNING LEAVER LEGAL LANE The Unlicensed Driver Dilemma LEGAL RISKS AND BEST PRACTICES FOR CALIFORNIA DEALERS BY TIMOTHY D. ROBINETT, ESQ. Partner, Manning, Leaver, Bruder & Berberich LLP Vehicle dealers regularly encounter situations involving unlicensed prospective drivers, whether during test drives, the sales process or vehicle delivery. While there is nothing in California law that prohibits a dealer from selling a vehicle to an unlicensed buyer, California law does provide clear statutory guidance for vehicle owners who permit unlicensed drivers to operate their vehicles. In addition, California courts have addressed the potential for a dealer’s liability after the sale. Dealers can minimize their exposure by implementing strict license-verification protocols for any test drives or loaners, documenting the delivery of a vehicle to a licensed driver or to a transporter, and employing protocols for obtaining written disclosures when the buyer is unlicensed. What About Test Drives or Loaner Vehicles? California law imposes duties on vehicle owners regarding who may drive their vehicles on public highways. Specifically, California Vehicle Code section 14606 prohibits employing, hiring, knowingly permitting or authorizing any person to drive a motor vehicle upon a highway unless that person holds a valid driver’s license appropriate for the vehicle’s class. Further, section 14604(a) provides that an owner may not knowingly allow another person to drive the owner’s vehicle unless the owner determines that the person has a valid driver’s license. The owner must make a reasonable effort or inquiry to determine license validity, but there is 23 California New Car Dealer Quarterly
RkJQdWJsaXNoZXIy MTg3NDExNQ==