NEW YORK - (08/02/05) -- Credit unions, banks and automakersin the Empire State are expected to jump back into the auto leasingmarket as a result of a provision of the federal highwaytransportation bill passed last week that bans the state'svicarious liability law that holds a leasing company liability fora driver's negligence. The law has forced leasing companies,including most credit unions, out of auto leasing because of thepotential for million-dollar liability damages. Vicarious liabilityis a legal concept that holds a leasing company liable for theactions of the driver of a leased vehicle. New York was the laststate to have the vicarious liability provision on itsbooks.
Auto Leasers Can Once Again LiveVicariously
August 02, 2005, 1:00 a.m. EDT 1 Min Read
