Article: Automobile leasing and the vicarious liability of lessors.(New York)

INTRODUCTION

In 2003, some of the largest automobile financing companies determined that they would no longer offer leasing in New York State. (1) These companies ceased leasing because of a 1920s New York law that creates vicarious liability for car owners. (2) The statute, New York Vehicle and Traffic Law section 388, (3) has been interpreted to include long-term lessors as automobile owners (4) because they hold title to the leased vehicles, even though the lessors do not possess the vehicles during the lease period. (5)

This Comment addresses whether holding such automobile lessors vicariously liable is justified. Part I discusses the relevant ...

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