If you are someone who lends, rents, donates, or makes a motor vehicle available for a test drive or use, it’s important to understand the potential liability you might face if someone gets hurt, or damages occur while the vehicle is in someone else’s hands. Fortunately, Oregon law offers some important protections that can limit your liability under certain conditions.
In this post, we will break down the key points of Oregon’s liability provisions related to lending or providing motor vehicles, based on ORS 30.135.
1. Basic Liability Protection
According to Oregon law, a person who lends, rents, donates, or otherwise provides a motor vehicle to another person is generally not liable for any injury, death, or damage that arises out of the vehicle’s use—unless the person providing the vehicle was negligent in some way.
2. Business-Related Transactions
The liability protection provided under this law applies only if the person lending or renting the vehicle is engaged in a business involving motor vehicles—like a car dealership, rental company, or repair shop. So, if you are simply an individual lending your car to a friend or family member, this provision may not apply to you unless you are a professional in the vehicle industry.
3. Written Agreement Requirement
Another important aspect of this law is the need for a written agreement between the vehicle provider and the person receiving the vehicle. This agreement must specifically state that the person receiving the vehicle is liable for any injury, death, or damage resulting from its use.
This written agreement is crucial, as it sets the terms under which the vehicle is provided and makes it clear who holds responsibility for any potential accidents or damages. The limitation on liability applies during the period specified in the agreement or until the vehicle is returned, whichever is later.
4. Does the Vehicle Need to Be Rented or Sold?
Interestingly, the law states that the limitation on liability applies regardless of whether the vehicle is provided for consideration (payment) or for free.
5. Exclusions to the Law
This law does not completely eliminate all potential liabilities. It specifically does not affect the liability of manufacturers, distributors, or sellers under product liability laws (ORS 30.900 to 30.920). This means that if a defect in the vehicle leads to an accident, the manufacturer or seller could still be held accountable.
Additionally, the law does not alter any obligations that a self-insurer (such as a business offering its own insurance for vehicle fleet use) might have under ORS 806.130.
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If you have been injured in an accident, call 800-273-5005 or email our attorneys at attorneys@glpattorneys.com to schedule a free lawyer consultation.