Business practices, nondeceptive--collision damage waiver, terms,conditions, notice required--damages, estimates, how made--remedies.
407.735. 1. Any business practices utilized by car rental companiesin furtherance of their business of renting vehicles to the public shall benondeceptive, fair and shall not be unconscionable.
2. Any collision damage waiver product offered for sale to the publicshall not contain any provisions that are deceptive, unfair orunconscionable. It is deceptive, unfair, and unconscionable to require aconsumer to assume absolute liability for damage or loss up to the totalvalue of a rental vehicle regardless of fault as a condition of the rentalagreement, and then not include as part of any collision damage waiverproduct, a waiver of liability for any damage or loss which occurs as aresult of the consumer's ordinary negligence, except where:
(1) The damage is caused intentionally by an authorized driver or asa result of his willful and wanton misconduct;
(2) The damage arises out of the authorized driver's operation of thevehicle while intoxicated or under the influence of any illegal orunauthorized drug;
(3) The rental transaction is based on fraudulent informationsupplied by the renter;
(4) The damage arises out of the use of the vehicle while committingor otherwise engaged in a criminal act in which the automobile usage issubstantially related to the nature of the criminal activity;
(5) The damage arises out of the use of the vehicle to carry personsor property for hire;
(6) The damage occurs while the vehicle is operated by a person otherthan an authorized driver as defined in section 407.730;
(7) The damage arises out of the use of the vehicle outside of theUnited States unless such use is specifically authorized by the rentalagreement;
(8) Towing or pushing anything or if operation of the vehicle on anunpaved road has resulted in damage or loss which is a direct result of theroad or driving conditions;
(9) Loss due to the theft of the rental vehicle. However, the rentershall be presumed to have no liability for any loss due to theft if:
(a) An authorized driver has possession of the ignition key furnishedby the rental company or an authorized driver establishes that the ignitionkey furnished by the car rental company was not in the vehicle at the timeof the theft; and
(b) An authorized driver files an official report of the theft withthe police or other law enforcement agency within twenty-four hours oflearning of the theft and reasonably cooperates with the car rental companyand the police or other law enforcement agency in providing informationconcerning the theft.
The presumption set forth in this paragraph is a presumption affecting theburden of proof which the car rental company may rebut by establishing thatan authorized driver committed, or aided and abetted the commission of, thetheft.
3. Any claim resulting from damage to or loss of a rental vehicleshall be reasonably and rationally related to the actual loss incurred.The car rental company shall not assert or collect any claim for physicalor mechanical damage to or loss of a rental vehicle which exceeds: theactual cash value of the vehicle immediately before the loss less anyproceeds from the vehicle's disposal after the loss, or the actual cost torepair the damaged vehicle including all discounts or price reductions,whichever is less. Such claim shall be based on an estimate of damage orrepair invoice made by an independent appraisal company, an insurancecompany, or a repair facility that completed or would complete the repairs.A car rental company's charge for loss of use shall not exceed a reasonableestimate of the actual income lost.
4. It is a deceptive and unfair practice for a car rental company oremployee to knowingly and intentionally misrepresent any material elementof a rental agreement transaction including the sale of collision damagewaiver and car rental insurance. The company shall disclose in the rentalagreement the extent of the consumer's liability for the vehicle andapplicable mileage limitations and charges. When the consumer elects thecollision damage waiver or car rental insurance, the price for collisiondamage waiver and car rental insurance shall appear on the rentalagreement. A car rental company shall not require the purchase ofcollision damage waiver or car rental insurance. No car rental companyshall sell to a consumer or offer to sell a consumer a collision damagewaiver or car rental insurance as a part of the rental agreement unless thecar rental company provides the consumer with the following written notice:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE: OUR CONTRACTOFFERS FOR AN ADDITIONAL CHARGE COLLISION DAMAGE WAIVER AND CAR RENTALINSURANCE PRODUCTS. BEFORE DECIDING WHETHER TO PURCHASE ANY OF THESEOPTIONAL PRODUCTS, YOU MAY WISH TO DETERMINE WHETHER YOUR PERSONALINSURANCE OR CREDIT CARD PROVIDES YOU COVERAGE DURING THE RENTAL PERIOD.THE PURCHASE OF ANY OF THESE OPTIONAL PRODUCTS IS NOT REQUIRED TO RENT AVEHICLE.Such notice shall be made on the face of the rental agreement as part ofthe written contract and shall be set apart in boldface type and in nosmaller print than ten-point type, and shall include a space for theconsumer to acknowledge his receipt of this notice. This noticerequirement shall be deemed satisfied if this written notice appears inmaterials furnished to a consumer during the enrollment process into amaster rental agreement. This notice provision is deemed complied with forall consumers who have previously enrolled into a master rental agreementprior to August 28, 2004, and no further notice shall be required.
5. The car rental company shall provide a notice at the rental officein the form of a sign, placard, or brochure that informs the consumer ofthe following:
(1) The availability of collision damage waiver;
(2) The availability of car rental insurance;
(3) A statement that the purchase of collision damage waiver and/orcar rental insurance is not required in order to rent.
The following language may be used to comply with the requirements of thissection, but shall not be considered the exclusive language that may beused:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE:
Our contract offers for an additional charge optional products whichprovide you protection during your rental, including:
1. Collision Damage Waiver: You are responsible for all damages toor loss of the rental vehicle. A Collision Damage Waiver will relieve youof responsibility for all or part of the damage to the rental vehicle thatmay occur during the rental period.
2. Personal Accident Insurance: Personal Accident Insurance providesaccidental death and accident medical insurance that protects you duringthe rental period in or out of the rental vehicle and your passengers whilein the rental vehicle.
3. Personal Effects Coverage: Personal Effects Coverage protectsyour possessions from loss or damage during the rental period.
4. Liability Insurance: Liability Insurance provides protection tocover injuries or death to third parties or damage to a third party'sproperty if you are at fault in an accident with the rental vehicle duringthe rental period.
Before deciding to purchase any of these optional products, you maywish to determine whether your personal insurance or credit card providesyou coverage during the rental period.
The purchase of any of these products is not required to rent avehicle.
6. Car rental companies shall not place a hold against a consumer'scredit limit or charge a consumer's credit card in a deceptive or unfairmanner, and without full and complete disclosure of such practice.
7. The remedies for any violation by a car rental company of anyprovision of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallbe injunctive relief and monetary damages in an amount not to exceed fiftydollars for each violation. The aggregate amount of monetary damages whichmay be assessed against a car rental company for violations of anyprovisions of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallnot exceed the sum of one hundred thousand dollars in the aggregate duringany calendar year.
(L. 1989 H.B. 893 § 3, A.L. 2003 S.B. 207, A.L. 2004 H.B. 1285 merged with S.B. 1233, et al.)
Business practices, nondeceptive--collision damage waiver, terms,conditions, notice required--damages, estimates, how made--remedies.
407.735. 1. Any business practices utilized by car rental companiesin furtherance of their business of renting vehicles to the public shall benondeceptive, fair and shall not be unconscionable.
2. Any collision damage waiver product offered for sale to the publicshall not contain any provisions that are deceptive, unfair orunconscionable. It is deceptive, unfair, and unconscionable to require aconsumer to assume absolute liability for damage or loss up to the totalvalue of a rental vehicle regardless of fault as a condition of the rentalagreement, and then not include as part of any collision damage waiverproduct, a waiver of liability for any damage or loss which occurs as aresult of the consumer's ordinary negligence, except where:
(1) The damage is caused intentionally by an authorized driver or asa result of his willful and wanton misconduct;
(2) The damage arises out of the authorized driver's operation of thevehicle while intoxicated or under the influence of any illegal orunauthorized drug;
(3) The rental transaction is based on fraudulent informationsupplied by the renter;
(4) The damage arises out of the use of the vehicle while committingor otherwise engaged in a criminal act in which the automobile usage issubstantially related to the nature of the criminal activity;
(5) The damage arises out of the use of the vehicle to carry personsor property for hire;
(6) The damage occurs while the vehicle is operated by a person otherthan an authorized driver as defined in section 407.730;
(7) The damage arises out of the use of the vehicle outside of theUnited States unless such use is specifically authorized by the rentalagreement;
(8) Towing or pushing anything or if operation of the vehicle on anunpaved road has resulted in damage or loss which is a direct result of theroad or driving conditions;
(9) Loss due to the theft of the rental vehicle. However, the rentershall be presumed to have no liability for any loss due to theft if:
(a) An authorized driver has possession of the ignition key furnishedby the rental company or an authorized driver establishes that the ignitionkey furnished by the car rental company was not in the vehicle at the timeof the theft; and
(b) An authorized driver files an official report of the theft withthe police or other law enforcement agency within twenty-four hours oflearning of the theft and reasonably cooperates with the car rental companyand the police or other law enforcement agency in providing informationconcerning the theft.
The presumption set forth in this paragraph is a presumption affecting theburden of proof which the car rental company may rebut by establishing thatan authorized driver committed, or aided and abetted the commission of, thetheft.
3. Any claim resulting from damage to or loss of a rental vehicleshall be reasonably and rationally related to the actual loss incurred.The car rental company shall not assert or collect any claim for physicalor mechanical damage to or loss of a rental vehicle which exceeds: theactual cash value of the vehicle immediately before the loss less anyproceeds from the vehicle's disposal after the loss, or the actual cost torepair the damaged vehicle including all discounts or price reductions,whichever is less. Such claim shall be based on an estimate of damage orrepair invoice made by an independent appraisal company, an insurancecompany, or a repair facility that completed or would complete the repairs.A car rental company's charge for loss of use shall not exceed a reasonableestimate of the actual income lost.
4. It is a deceptive and unfair practice for a car rental company oremployee to knowingly and intentionally misrepresent any material elementof a rental agreement transaction including the sale of collision damagewaiver and car rental insurance. The company shall disclose in the rentalagreement the extent of the consumer's liability for the vehicle andapplicable mileage limitations and charges. When the consumer elects thecollision damage waiver or car rental insurance, the price for collisiondamage waiver and car rental insurance shall appear on the rentalagreement. A car rental company shall not require the purchase ofcollision damage waiver or car rental insurance. No car rental companyshall sell to a consumer or offer to sell a consumer a collision damagewaiver or car rental insurance as a part of the rental agreement unless thecar rental company provides the consumer with the following written notice:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE: OUR CONTRACTOFFERS FOR AN ADDITIONAL CHARGE COLLISION DAMAGE WAIVER AND CAR RENTALINSURANCE PRODUCTS. BEFORE DECIDING WHETHER TO PURCHASE ANY OF THESEOPTIONAL PRODUCTS, YOU MAY WISH TO DETERMINE WHETHER YOUR PERSONALINSURANCE OR CREDIT CARD PROVIDES YOU COVERAGE DURING THE RENTAL PERIOD.THE PURCHASE OF ANY OF THESE OPTIONAL PRODUCTS IS NOT REQUIRED TO RENT AVEHICLE.Such notice shall be made on the face of the rental agreement as part ofthe written contract and shall be set apart in boldface type and in nosmaller print than ten-point type, and shall include a space for theconsumer to acknowledge his receipt of this notice. This noticerequirement shall be deemed satisfied if this written notice appears inmaterials furnished to a consumer during the enrollment process into amaster rental agreement. This notice provision is deemed complied with forall consumers who have previously enrolled into a master rental agreementprior to August 28, 2004, and no further notice shall be required.
5. The car rental company shall provide a notice at the rental officein the form of a sign, placard, or brochure that informs the consumer ofthe following:
(1) The availability of collision damage waiver;
(2) The availability of car rental insurance;
(3) A statement that the purchase of collision damage waiver and/orcar rental insurance is not required in order to rent.
The following language may be used to comply with the requirements of thissection, but shall not be considered the exclusive language that may beused:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE:
Our contract offers for an additional charge optional products whichprovide you protection during your rental, including:
1. Collision Damage Waiver: You are responsible for all damages toor loss of the rental vehicle. A Collision Damage Waiver will relieve youof responsibility for all or part of the damage to the rental vehicle thatmay occur during the rental period.
2. Personal Accident Insurance: Personal Accident Insurance providesaccidental death and accident medical insurance that protects you duringthe rental period in or out of the rental vehicle and your passengers whilein the rental vehicle.
3. Personal Effects Coverage: Personal Effects Coverage protectsyour possessions from loss or damage during the rental period.
4. Liability Insurance: Liability Insurance provides protection tocover injuries or death to third parties or damage to a third party'sproperty if you are at fault in an accident with the rental vehicle duringthe rental period.
Before deciding to purchase any of these optional products, you maywish to determine whether your personal insurance or credit card providesyou coverage during the rental period.
The purchase of any of these products is not required to rent avehicle.
6. Car rental companies shall not place a hold against a consumer'scredit limit or charge a consumer's credit card in a deceptive or unfairmanner, and without full and complete disclosure of such practice.
7. The remedies for any violation by a car rental company of anyprovision of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallbe injunctive relief and monetary damages in an amount not to exceed fiftydollars for each violation. The aggregate amount of monetary damages whichmay be assessed against a car rental company for violations of anyprovisions of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallnot exceed the sum of one hundred thousand dollars in the aggregate duringany calendar year.
(L. 1989 H.B. 893 § 3, A.L. 2003 S.B. 207, A.L. 2004 H.B. 1285 merged with S.B. 1233, et al.)
Business practices, nondeceptive--collision damage waiver, terms,conditions, notice required--damages, estimates, how made--remedies.
407.735. 1. Any business practices utilized by car rental companiesin furtherance of their business of renting vehicles to the public shall benondeceptive, fair and shall not be unconscionable.
2. Any collision damage waiver product offered for sale to the publicshall not contain any provisions that are deceptive, unfair orunconscionable. It is deceptive, unfair, and unconscionable to require aconsumer to assume absolute liability for damage or loss up to the totalvalue of a rental vehicle regardless of fault as a condition of the rentalagreement, and then not include as part of any collision damage waiverproduct, a waiver of liability for any damage or loss which occurs as aresult of the consumer's ordinary negligence, except where:
(1) The damage is caused intentionally by an authorized driver or asa result of his willful and wanton misconduct;
(2) The damage arises out of the authorized driver's operation of thevehicle while intoxicated or under the influence of any illegal orunauthorized drug;
(3) The rental transaction is based on fraudulent informationsupplied by the renter;
(4) The damage arises out of the use of the vehicle while committingor otherwise engaged in a criminal act in which the automobile usage issubstantially related to the nature of the criminal activity;
(5) The damage arises out of the use of the vehicle to carry personsor property for hire;
(6) The damage occurs while the vehicle is operated by a person otherthan an authorized driver as defined in section 407.730;
(7) The damage arises out of the use of the vehicle outside of theUnited States unless such use is specifically authorized by the rentalagreement;
(8) Towing or pushing anything or if operation of the vehicle on anunpaved road has resulted in damage or loss which is a direct result of theroad or driving conditions;
(9) Loss due to the theft of the rental vehicle. However, the rentershall be presumed to have no liability for any loss due to theft if:
(a) An authorized driver has possession of the ignition key furnishedby the rental company or an authorized driver establishes that the ignitionkey furnished by the car rental company was not in the vehicle at the timeof the theft; and
(b) An authorized driver files an official report of the theft withthe police or other law enforcement agency within twenty-four hours oflearning of the theft and reasonably cooperates with the car rental companyand the police or other law enforcement agency in providing informationconcerning the theft.
The presumption set forth in this paragraph is a presumption affecting theburden of proof which the car rental company may rebut by establishing thatan authorized driver committed, or aided and abetted the commission of, thetheft.
3. Any claim resulting from damage to or loss of a rental vehicleshall be reasonably and rationally related to the actual loss incurred.The car rental company shall not assert or collect any claim for physicalor mechanical damage to or loss of a rental vehicle which exceeds: theactual cash value of the vehicle immediately before the loss less anyproceeds from the vehicle's disposal after the loss, or the actual cost torepair the damaged vehicle including all discounts or price reductions,whichever is less. Such claim shall be based on an estimate of damage orrepair invoice made by an independent appraisal company, an insurancecompany, or a repair facility that completed or would complete the repairs.A car rental company's charge for loss of use shall not exceed a reasonableestimate of the actual income lost.
4. It is a deceptive and unfair practice for a car rental company oremployee to knowingly and intentionally misrepresent any material elementof a rental agreement transaction including the sale of collision damagewaiver and car rental insurance. The company shall disclose in the rentalagreement the extent of the consumer's liability for the vehicle andapplicable mileage limitations and charges. When the consumer elects thecollision damage waiver or car rental insurance, the price for collisiondamage waiver and car rental insurance shall appear on the rentalagreement. A car rental company shall not require the purchase ofcollision damage waiver or car rental insurance. No car rental companyshall sell to a consumer or offer to sell a consumer a collision damagewaiver or car rental insurance as a part of the rental agreement unless thecar rental company provides the consumer with the following written notice:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE: OUR CONTRACTOFFERS FOR AN ADDITIONAL CHARGE COLLISION DAMAGE WAIVER AND CAR RENTALINSURANCE PRODUCTS. BEFORE DECIDING WHETHER TO PURCHASE ANY OF THESEOPTIONAL PRODUCTS, YOU MAY WISH TO DETERMINE WHETHER YOUR PERSONALINSURANCE OR CREDIT CARD PROVIDES YOU COVERAGE DURING THE RENTAL PERIOD.THE PURCHASE OF ANY OF THESE OPTIONAL PRODUCTS IS NOT REQUIRED TO RENT AVEHICLE.Such notice shall be made on the face of the rental agreement as part ofthe written contract and shall be set apart in boldface type and in nosmaller print than ten-point type, and shall include a space for theconsumer to acknowledge his receipt of this notice. This noticerequirement shall be deemed satisfied if this written notice appears inmaterials furnished to a consumer during the enrollment process into amaster rental agreement. This notice provision is deemed complied with forall consumers who have previously enrolled into a master rental agreementprior to August 28, 2004, and no further notice shall be required.
5. The car rental company shall provide a notice at the rental officein the form of a sign, placard, or brochure that informs the consumer ofthe following:
(1) The availability of collision damage waiver;
(2) The availability of car rental insurance;
(3) A statement that the purchase of collision damage waiver and/orcar rental insurance is not required in order to rent.
The following language may be used to comply with the requirements of thissection, but shall not be considered the exclusive language that may beused:
COLLISION DAMAGE WAIVER AND CAR RENTAL INSURANCE NOTICE:
Our contract offers for an additional charge optional products whichprovide you protection during your rental, including:
1. Collision Damage Waiver: You are responsible for all damages toor loss of the rental vehicle. A Collision Damage Waiver will relieve youof responsibility for all or part of the damage to the rental vehicle thatmay occur during the rental period.
2. Personal Accident Insurance: Personal Accident Insurance providesaccidental death and accident medical insurance that protects you duringthe rental period in or out of the rental vehicle and your passengers whilein the rental vehicle.
3. Personal Effects Coverage: Personal Effects Coverage protectsyour possessions from loss or damage during the rental period.
4. Liability Insurance: Liability Insurance provides protection tocover injuries or death to third parties or damage to a third party'sproperty if you are at fault in an accident with the rental vehicle duringthe rental period.
Before deciding to purchase any of these optional products, you maywish to determine whether your personal insurance or credit card providesyou coverage during the rental period.
The purchase of any of these products is not required to rent avehicle.
6. Car rental companies shall not place a hold against a consumer'scredit limit or charge a consumer's credit card in a deceptive or unfairmanner, and without full and complete disclosure of such practice.
7. The remedies for any violation by a car rental company of anyprovision of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallbe injunctive relief and monetary damages in an amount not to exceed fiftydollars for each violation. The aggregate amount of monetary damages whichmay be assessed against a car rental company for violations of anyprovisions of sections 407.730 to 407.735, or for any conduct, act, orpractice prescribed by any provisions of sections 407.730 to 407.735, shallnot exceed the sum of one hundred thousand dollars in the aggregate duringany calendar year.
(L. 1989 H.B. 893 § 3, A.L. 2003 S.B. 207, A.L. 2004 H.B. 1285 merged with S.B. 1233, et al.)
