May 7, 2024
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Arranging car rentals does not make a business a car-rental company, court says – San Francisco Chronicle

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Turo Inc. functions An internet-based mostly platform That permits automotive house personalers to lease out Their very personal automobiles. However as a Outcome of The agency doesn’t personal the automotives itself, it’s not a automotive-leaseal agency, a state appeals courtroom says — so it doesn’t Want to pay San Francisco for a permit To function at San Francisco Worldwide Airport.

Turo Is predicated in San Francisco and functions in completely diffelease U.S. states, Good Britain and Canadverta. Like leaseal corporations, it costs costs to leaseers, curleases insurance coverage and models guidelines for smoking and completely diffelease conduct Inside the automobiles.

“Turo’s complete enterprise consists of enabling The general public to lease motor automobiles,” The primary District Court of Attraction noticed Tuesday. However it said the definition of a automotive leaseer beneath California regulation — somebody who has a contract for “lease or lease of a passenger car from a leaseal agency” — applies solely to corporations that personal or advertministration the leaseed automobiles, and To not a enterprise like Turo that arranges leases of automobiles personaled by completely diffeleases.

As properly as, the courtroom famous, state regulation says that if a driver damages a leaseed car, The driving strain is Responsible for The prices of restore, plus towing and storage costs.

“These limits presume thOn the leaseal agency personals or advertministrations the leaseed car,” Which Is not the case for Turo, Simplyice Marla Miller said Inside The three-0 ruling. The courtroom overturned a 2020 choice by Superior Court Decide Ethan Schulman holding Turo Responsible for leaseal costs at SFO.

The case is considerably Simply like disputes over whether or not journey-hailing corporations like Uber and Lyft are Inside the enterprise of transportation, as state regulators contend, or merely …….

Source: https://www.sfchronicle.com/bayarea/article/Arranging-car-rentals-does-not-make-a-business-a-17275519.php