Congress modified emissions standards in the
1977 Clean Air Act Amendments (42 U.S.C.A.
§ 7401 et seq.) and in the Clean Air Act
Amendments of 1990 (Pub. L. No. 101-549, 104
Stat. 2 399 [42 U.S.C.A. § 7401 et seq. (1995)]).
The modified standards, as defined and moni-
tored by the
ENVIRONMENTAL PROTECTION AGENCY
(EPA), include d new re quirement s for st ates
with low air quality to implement inspection and
maintenance programs for all cars. These inspec-
tions were designed to ensure that vehicle emis-
sions s ystems were working properly. In 1992
the EPA implemented strict emissions testing
requirements for 18 states and 33 cities with
excessive levels of carbon monoxide and ozone.
California has been a leader in setting of air-
quality standards. In 1989 it announced new
guidelines that called for t he phasing out gas-
fueled cars in southern California by the year 2010.
Critics maintain that federal emissions
regulations have been too costly and that
regulators should focus on reducing the emis-
sions of more significant polluters, such as
power plants and factories.
Fuel Efficiency Standards In the 1975 Energy
Policy and Conservation Act (Pub. L. No. 94–
163, 89 Stat. 871 [codified as amended in
scattered sections of 12 U.S.C.A., 15 U.S.C.A.,
and 42 U.S.C.A.]), Congress created a set of
corporate average fuel economy (CAFE) stan-

dards for new cars manufactured in the United
States. The secretary of transportation was
empowered with overseeing these standards.
The standards mandated that each car manufac-
turer achieve an average fuel economy of 27.5
miles per gallon (mpg) for its entire fleet of cars
by 1985. Manufacturers that did not achieve
these standards were to be fined. In 1980 an
additional
SALES TAX at purchase w as placed upon
“gas guzzlers” (cars that fail to achieve certain
levels of fuel economy). The more a car’s gas
mileage is below a set standard—which was 22.5
mpg in 1986—the greater the tax. For example, a
1986 car that achieved less than 12.5 mpg was
charged an additional sales tax of $3,850. Some
members of Congress have lobbied for fuel-
efficiency standards as high as a 40 mpg fleet
average for auto manufacturers.
The fleet-average fuel efficiency of cars
nearly doubled between 1973 and 1984. How-
ever, detractors of fuel efficiency standards
maintain that the increase in efficiency was
not entirely due to federal standards. They argue
that fuel efficiency would have risen without
regulation, in response to higher gas prices and
consumer demand for more efficient cars.
But that did not happen soon enough,
without legislative intervention. In December
2007 Congress passed the Energy Independence

and Security Act of 2007 (P.L. 110–140), which
mandates a CAFE of 35 mpg by 2020. Nearly
concurrently, the EPA denied a Clean Air Act
WAIVER for California to set its own proposed
vehicle emissions standards (even though they
would have required higher fuel efficiency than
the new law) because they were made moot by
the new energy law.
Import Quotas Faced with increasingly stiff
competition from Japan and Europe, U.S. car
manufacturers in the early 1980s pressed the
federal government to limit the number of
foreign cars imported into the United States.
The administration of President
RONALD REAGAN
responded by negotiating quotas, or limits, on
Japanese car imports from 1981 to 1985. The
Japanese voluntarily continued quotas on their
car exports through the late 1980s, and quotas
on picku p trucks from Japan remained in effect
through the mid-1990s.
Tort Lawand AutomobileManufacturing Courts
have established that manufacturers may be
held liable and sued for property damage and
personal suffering caused by the products
they have manufactured. Automobile manufac-
turers, like all manufacturers, are thus subject to
PRODUCT LIABILITY law. Anyone who suffers harm,
injury, or property damage from an improperly
made auto may sue for damages. Actions that

involve a breach of the manufacturer’s respon-
sibility to provide a reasonably safe vehicle are
a type of product liability suit.
Courts have found that auto manufacturers
have a duty to reasonably design their vehicle
against foreseeable accidents. The most impor-
tant legal concept in this areais crashworthiness—a
manufacturer’sresponsibilitytomakethecar
reasonably safe in the event of a crash. The
standard of crashworthiness makes it possible to
hold manufacturers liable for a defect that causes
or enhances injuries suffered in a crash, even if
that defect did not cause the crash itself. Auto
injuries are often the result of a “second
collision,” when the occupant’s body strikes the
interior of the car or strikes an exterior object
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
448 AUTOMOBILES
after being thrown from the vehicle. Second
collisions can occur when the seat belt fails, for
example. Other examples of failures in crash-
worthiness include instruments that protrude on
a dashboard, or a fuel tank that explodes after
impact. One landmark case in this area of
manufacturer liability is Larsen v. General Motors
Corp., 391 F.2d 495 (8th Cir. 1968), in which an
individual was compensated for injuries suffered
when his head struck a steering wheel in an
accident. In another significant case, Grimshaw v.
Ford Motor Co., 119 Cal. App. Ct. 3d 757, 174

Cal. Rptr. 348 (1981), a California jury required
Ford Motor Company to pay $125 million in
PUNITIVE DAMAGES (later lowered to $3.5 million)
to a teenager who was severely burned in a fire
that resulted when his Ford Pinto was rear-ended
and the fuel tank exploded.
Automakers may also be held liable for
failure to warn of a product’s dangerous
tendencies. Manufacturers have, for example,
been sued for failing to warn drivers that certain
vehicles had a tendency to roll over in some
conditions.
One of the more high-profile cases involving
defects in automobiles and their parts involved
Ford Motor Company and the tire manufacturer
Bridgestone/Firestone. On May 2, 2000, the
NHTSA began an investigation involving Fire-
stone tires. By that time, the agency had received
90 complaints from consumers who had suffered
accidents because the tread on the tires of their
Ford Explorers had allegedly caused their
vehicles to roll over. These accidents had resulted
in at least 27 injuries and four deaths. On August
9, 2000, Bridgestone/Firestone announced the
recall of 6.5 million tires, many of which were
standard equipment on Explorers.
Ford and Bridgestone/Firestone eventually
faced more than 1,000 lawsuits in state and
federal court. Many of these cases were settled,
including several cases that had been followed

closely by the national media. In one case,
Marisa Rodriguez of Texas suffered permanent
paralysis in 1998 when a faulty tire in the Ford
Explorer in which she was riding caused the
vehicle to roll over. Rodriguez sought damages
of $1 billion when she brought suit in the U.S.
district court for the Southern District of Texas,
though she eventually settled the case for a
reported $6 million.
By 2002 the total number of fataliti es had
increased to 271, with more than 1,000 injuries.
By February 2003 several
CLASS ACTION and other
suits were pending against Bridgestone/Fire-
stone. In 2001 Congress conducted a series of
hearings investigating the Ford and Bridge-
stone/Firestone fiasco. Congress eventually
enacted the Transportatio n Recall Enhance-
ment, Accountability, and Documentation Act,
Pub. L. No. 106-414, 114 Stat. 1800 (49 U.S.C.
A. §§ 30101 et seq.). It provides criminal
penalties for misleading the Secretary of
Transportation with respect to vehicle and
equipment-related safety defects. Although the
provisions of the statute do not apply to the
Firestone/Ford cases.
Sale, Lease, and Rental
When shopping for a car, consumers generally
receive their first information through advertis-
ing. States regulate automobile ads in different

ways. In some states, an ad must provide the
number of advertised vehicles available for sale,
the price, the dealer, and the factory-installed
options and
WARRANTY terms. Car buyers shou ld
beware of bait-and-switch advertising, in which
a dealer advertises a specific car for sale without
Number of Motor Vehicle Sales and Leases in the United States
0.328
3.314
13.326
16.971
0.432
3.401
13.465
17.297
0.497
3.403
13.545
17.445
0.544
3.692
12.813
17.048
0.373
3.756
12.334
16.462
0 5 10 15 20
2003

2004
2005
2006
2007
Year
Number of vehicles, in millions
SOURCE: U.S. Bureau of Economic Anal
y
sis, Auto and Truck Seasonal Adjustment.
New motor vehicle sales and leases
Domestic Import
Other
ILLUSTRATION BY GGS
CREATIVE RESOURCES.
REPRODUCED BY
PERMISSION OF GALE,
A PART OF CENGAGE
LEARNING.
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3
RD E DITION
AUTOMOBILES 449
the intention of actually selling it. The ad lures
the customer into the showroom so that she or
he may be persuaded to buy a higher-priced,
unadvertised vehicle. When buyers encounter
this type of
FRAUD, or any other type of CONSUMER
FRAUD
, they should contact the CONSUMER
PROTECTION

division of their state attorney
general’s office.
The
STATUTE O F F RAUDS of the UNIF ORM COMMER-
CIAL CODE
(UCC) governs the sale of autos in every
state except Louisiana. According to the UCC, an
auto contract must be in writing in order to be
considered valid in court. The purchaser and an
agent of the seller—an authorized salesperson,
supervisor, or manager—must sign the contract.
Buyers should read all terms of the contract
before signing. The contract should specify
whether the car is new or use d and include a
description of the car, the car’s vehicle identifi-
cation number (VIN) (on the driver’ssideofthe
dashboard near the window), details of any
trade-in, and the terms of financing, including
the
ANNUAL PERCENTAGE RATE.
In most states, the title for a new or used car
passes to the buyer when the seller endorses the
certificate of title. If the buyer does not maintain
payments according to the finance a greement, the
creditor can repossess the car as collateral for the
What to Do If You Are in an
Auto Accident
S
B
ooner or later, y ou are likelyto have an accident.

Fortunately, it will probably be a minor collision
that damages only the vehicles involved. However,
whether you are in a minor or major accident,
behaving coolly, calmly, and properly a fter it occurs
could save you a lot of money and trouble.
Some suggestions on wh at to do if you are in an
auto accident:
1. If possible, move your car to the side of the
road or out of the way of traffic.
2. Turn on your car flashers or set up flares to
warn other motorists of t he accident.
3. Do not make any statements concerning who was
at fault, or assign blame to anyone involved.
4. Help any persons who are injured. Most states
have laws requiring you to render aid t o
anyone injure d in the accident. C all an
ambulance if necessary.
5. Write down the name, address, license plate
number, and driver’s license number of the other
driver and ask to see his or her vehicle
registration certificate and proof of insurance.
Write down the insurance company name and
policy number of the other driver. If asked, do the
same for the other driver. Do not reveal the
amount of your insurance coverage.
6. Write down the names and addresses of all
passengers involved and of any witnesses to
the accident.
7. Notify the police, particularly if anyone is hurt
or injured at t he scene.

8. Write down t he names and badge numbers of
any police officers at the scene.
9. Ifpossible,takeapictureofthesceneofthe
accident, including damage to cars and skid
marks.
10. Draw a rough diagram o f what happened in the
accident, noting road conditions, weather, and
lighting.
11. If you suspect you have any injuries, obtain
medical care.
12. Talk to a lawyer if you intend to file a lawsuit
regarding the accident.
All states require those involved in an accident
to file a report with the police or bureau of motor
vehicles if the accident involves a death, a personal
injury, or property damage above a certain amount,
such a s $500. Some states require that the report be
made immediately; others allow five to thirty days.
Failure to file a report is a misdemeanor in most
states and could result in the s uspension of your
driver’slicense.
Some insurance companies provide their policy-
holders with accident report forms. Such forms
make it easier to obtain the necessary information if
you are in an accident. If you have them, keep them
handy in your v ehicle.
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
450 AUTOMOBILES
loan. The debtor has t he right t o b uy back the car
(redeem the c ollateral) and can do so by paying

the entire balance due plus
REPOSSESSION costs.
Eventually, the creditor may sell the car to
another party. If the profit from the sale does
not satisfy the debt, the debtor is liable for the
difference. If the profit f rom the sale is greater
than the debt, the creditor must pay the difference
to the debtor. In some states, the creditor is
required by the U CC to notify the debtor of the
time, place, and manner of any sale of the car.
All used-car dealers must attach a buyer’s
guide to the side window of any car they are
selling. It must state whether the car comes with
a warranty; outline the specific coverage of any
warranty; recommend that an independent
mechanic inspect the car; state that all promises
should be put in writing; and provide a list of
potential problems with the car. The buyer’s
guide becomes part of any contract with the
seller. The seller must be truthful about the car
and should provide the buyer with the car’s
complete service records and a signed, written
statement of the odometer reading and its
accuracy. If the car does not perform as
promised, a breach of warranty may have
occurred. If an individual pays more than
$500 for a used car, he or she should have a
written contract and a
BILL OF SALE. The latter is
required in many states to register a car and

should include the date of sale; the year, make,
and model of the car; the VIN; the odometer
reading; the amount paid for the car and what
form it took; the buyer’s and seller’s names,
addresses, and phone numbers; and the seller’s
signature.
The sale of new automobiles is subject to
what are popularly called “lemon laws.” Lemon
is the slang term for a car that just does not
work right.
LEMON LAWS, in force in all states as
of 2003, entitle a car buyer to a replacement car
or a refund if the purchased car cannot be
satisfactorily repaired by the dealer. States vary
in their requirements for determining whether a
car is a lemon. Most define a lemon as a vehicle
that has been taken in at least four times for the
same repair or is out of service for a total of 30
days during the coverage period. The coverage
period is usually one year from delivery or the
duration of the written warranty, whichever is
shorter. The owner must keep careful records of
repairs and submit a written notice to the
manufacturer stating the problems with the car
and an intention to declare it unfit for use.
Many states require that the buyer and the
manufacturer or dealer submit to private
ARBITRATION, a system of negotiating differences
out of court. Increasingly, states are passing
lemon laws for used as well as new cars.

Leasing is a popular method of purchasing
the use of a car. Leasing is essentially long-term
rental. For persons who drive few miles per
year, like to change cars often, or use their cars
for business, leasing is an attractive option. A
lease contrac t may or may not include other
expenses such as sales tax, license fee, and
Highway patrol
officers, checking for
drunk drivers,
examine drivers’
licenses at a roadblock
on a North Carolina
highway.
AP IMAGES
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3
RD E DITION
AUTOMOBILES 451
insurance. In a closed-end, or “walkaway,” lease
contract, the car is returned at the end of the
contract period, and the lessee is free to “walk
away” regardless of the value of the car. In an
open-end lease, the lessee gambles that the car will
be worth a stated price at the end of the lease. If the
car is worth more than that price, the lessee may
owe nothing or may be refunded the difference; if
the car is worth less, the lessee will pay some or all
of the difference. Payments are usually higher
under a closed-end lease than under an open-end
lease. Open-end leases more commonly have a

purchase option at the end of the lease term.
To lease or rent an auto, an individual must
show a valid driver’s license and, usually, a
major credit card. A rental business may require
that a customer have a good driving record and
be of a certain age, sometimes 25 years old or
older. An auto rental, unlike a lease, may be as
short as one day. A rental company may offer a
No-Fault Automobile Insurance
E
ver since the invention of automo-
biles, there have been automobile
accidents. And with those accidents have
come legal disputes about who was most
at fault in causing them—and who
should be forced to pay damages. The
U.S. legal and political systems have
struggled to determine the best way to
handle the large number of legal disputes
related to automobile accidents. Although
the states vary in their procedures, two
basic approaches have evolved. The first
and older approach is the traditional
LIABILITY LITIGATION system, which
attempts to determine, usually through
jury trials, who is more liable, or more at
fault, and must pay damages. The second
and more recent approach is no-fault
insurance, which simply allows each party
to be compensated, regardless of fault, by

its own insurance company for accident
damages. Both approaches have their
advantages and disadvantages, and the
debate about which is better continues.
The traditional liability litigation
system developed out of the English
COMMON LAW. Under this system, anyone
who suffers an injury from a wrong or
negligent act of another is free to sue the
other party for damages. For example,
someone who is paralyzed in an auto-
mobile accident and becomes confined
to a wheelchair may sue the other driver
or drivers involved in the accident.
Whether or not the injured person
receives payment for those damages is
largely dependent on a determination of
who was more at fault in causing the
accident. If, in a court of law, it is
determined that the other driver is at
fault, then the injured person may collect
a large sum from the other driver or, if
the other driver has liability insurance,
from the other driver’s insurance com-
pany; if it is determined that the other
driver is not at fault, the injured person
may not receive any payments beyond
those from her or his own insurance
company.
This system of resolving disputes is

also called the tort litigation process. In
relation to automobile accidents, a tort is
a civil (as opposed to criminal) wrong
that causes an accident—for example,
failure to practice caution while driving,
thus causing a collision with another car
and injuries to its passengers.
As time passed and auto accidents
became more frequent, some people
began to point out problems in the
liability litigation system for resolving
accident disputes. They noted that,
owing to the complicated nature of many
automobile accidents, it often took a
great deal of time to determine who was
at fault. As a result, many accident
victims had to wait a considerable period
before they could receive adequate com-
pensation for their injuries. Other vic-
tims who may have been unable to work
because of injuries, frequently settled for
smaller amounts or even waived their
right to a trial, in order to receive faster
payment from insurance companies.
Other critics of the liability litigation
process claimed that the awards granted
in auto accident cases varied greatly.
Some people were overpaid, and others
underpaid, for their damages. A better
system, critics maintained, would make

all drivers share in the cost of accidents.
These critics began to press for a no-fault
insurance system as an alternative to
liability litigation.
As early as 1946, the Province of
Saskatchewan, Canada, enacted no-fault
auto insurance. Under a no-fault system,
those involved in an accident are com-
pensated for their physical injuries up to
a certain limit; even the driver who
causes the accident is paid for damages.
In its purest form, no-fault automobile
insurance does not allow those involved
in an accident to sue each other, nor can
any party recover damages for pain and
suffering. However, no-fault plans are
often combined with traditional liability
systems to allow accident victims to sue
when damages exceed a certain thresh-
old. For example, in New York, it is
possible to sue to recover for economic
damages greater than $50,000 or for pain
and suffering because of death or serious
injury. No-fault insurance plans are
always compulsory, and every driver
who wishes to register a vehicle must
obtain at least the minimum standard of
no-fault insurance.
In the United States, no-fault auto-
mobile insurance was first enacted by

Massachusetts in 1971 (Mass. Gen. Laws
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
452 AUTOMOBILES
collision damage waiver (CDW) option, which
provides insurance coverage for damages to the
rented car. The CDW option does not cover
personal injuries or personal property damage.
Operation and Maintenance
The operation of an automobile on a public
street or highway is a privilege that can be
regulated by motor vehicle laws. The individual
states derive authority to control traffic from
their
POLICE POWER, but often they delegate this
authority to a local police force. On the national
level, Congress is empowered to regulate motor
vehicles that are engaged in interstate commerce.
Automobile regulations are provided for the
safety and protection of the public. The laws
must be reasonable and should not impose an
extraordinary burden on the owners or opera-
tors. Such laws also provide a means of
identifying vehicles involved in an accident or
Ann. ch. 90 § 34A et seq. [West 1995])in
response to public dissatisfaction with
long, drawn-out, and expensive court
cases for compensation of losses suffered
in traffic accidents. In the same year,
Congress considered no-fault as a com-
prehensive national automobile insur-

ance plan, but the proposal never became
law. That unsuccessful bill evolved into
the National Standards for No-Fault
Insurance Plans Act, which would have
set federal standards for state no-fault
insurance laws. It too did not pass.
Opponents of the bill claimed that the
states should be allowed to experiment
with this new approach before a national
plan was adopted. By the mid-1990s,
roughly half the states had enacted no-
fault insurance plans.
In arguing for no-fault insurance,
advocates pointed out a number of
advantages, including faster benefits pay-
ment and more equal damages awards to
accident victims. They claimed that no-
fault insurance would reduce the number
of traffic-related court cases, thereby
freeing up the courts to consider other
cases. No-fault, they argued, would also
reduce the cost of car insurance pre-
miums as the legal costs associated with
settling auto-related cases decreased.
Since the establishment of no-fault
insurance in many states, no-fault advo-
cates have bolstered their cause even
more by pointing to statistics showing
that no-fault plans increase the percent-
age of insurance benefits payments that

go to victims rather than to lawyers and
court costs. According to those statistics,
in states without no-fault insurance, only
forty-eight cents of each dollar spent for
insurance premiums goes to those in-
jured in accidents, whereas thirty-two
cents goes to court costs and lawyers’
fees. However, under the no-fault system
in force in Michigan, for example,
seventy-three cents of each insurance
premium dollar goes to accident victims
and four cents goes to court costs and
lawyers’ fees (Carper 1992).
On the other side of the issue, critics
make a number of different points
against no-fault insurance. Many, includ-
ing trial lawyers and some consumer
advocates, object to no-fault insurance’s
elimination of or substantial restrictions
on the right to sue for damages. Many
states, for example, allow injured parties
to sue for “pain and suffering” only if
they have sustained specific injuries such
as dismemberment, disfigurement, or
fracture. Often, “soft-tissue” injuries
such as whiplash are not allowed as
adequate grounds for a lawsuit. Critics
also maintain that no-fault insurance
takes away the incentive to drive safely.
Under the system of no-fault insurance,

careless, negligent drivers are entitled to
the same compensation in an accident as
are careful, responsible drivers. In addi-
tion, critics of no-fault insurance cite
evidence that the system has not reduced
insurance premiums. Under no-fault
plans, they argue, the number of persons
receiving benefits payments has in-
creased, thus offsetting the reduction in
legal costs.
It remains to be seen whether no-
fault insurance will continue to spread to
other states. Nevada and Pennsylvania
have tried no-fault insurance plans and
repealed them, with Nevada returning to
a financial responsibility law and manda-
tory liability and property damage insur-
ance. California has considered no-fault
insurance for many years but has never
adopted it. Some states are looking at
compromise plans that preserve elements
of both the traditional liability litigation
system and the no-fault system. These
plans, such as the one in New York,
compensate all accident victims, regard-
less of fault, for basic economic losses—
including medical and hospital expenses
and lost wages or services—and in the
process eliminate small cases where
litigation is least cost-effective. At the

same time, such plans preserve the right
to sue for damages in cases of death or
serious injury or when damages exceed a
certain amount.
In the end, the question of how to
handle auto accident disputes will be
decided on the basis of which system—
liability litigation, no-fault insurance, or
a compromise between the two—is
deemed better at limiting costs and at
the same time preserving the value of
fairness that underlies the U.S. system of
justice.
FURTHER READINGS
Lascher, Edward L., Jr., and Michael R.
Powers, eds. 2001. The Economics and
Politics of Choice No-Fault Insurance.
Boston: Kluwer Academic Publishers.
Liao, Y-Ping, and Michelle J. White. 2002.
“No-Fault for Motor Vehicles: an Eco-
nomic Analysis.” American Law and
Economics Review 4 (fall): 258–94.
Mandell, Mark S. 1999. “What’s Wrong with
Auto No-Fault: S. 625, the Auto-Choice
Reform Act.” Trial Lawyers Quarterly 29
(winter): 31–42.
Schwartz, Gary T. 2000. “Auto No-Fault and
First-Party Insurance: Advantages and
Problems.” Southern California Law Re-
view 73 (March): 611–75.

CROSS REFERENCES
Insurance; Tort Law.
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
AUTOMOBILES 453
a THEFT and of raising revenue for the state by
fees imposed on the owner or operator.
Registration and Licensing Every state requires
the owne r of a vehicle to possess two docu-
ments: a c ertificate of ownership, or title, and
a certificate of registr ation. Through registra-
tion, the owner’sname,thetypeofvehicle,
the ve hicle’s lic ense plate number , and the VIN
are all registered with the state in a centra l
government office. On payment of a fee, a
certificate of registration a nd licen se pla tes are
given to the owner as evidence of compliance
with the law. The operator is required to display
the l icen se plates appropriately on the car—one
on the back of the vehicle and sometimes
one on the front and the back—and have the
certificate of registration and license in posses-
sion w hile driving and ready to display when in
anaccidentorrequestedtodosobyapolice
officer. If a driver moves to another state, he or
she must register the vehic le in that state within
a certain amount of time, either immediately or
within 20 to 30 days.
Adriver’s license is also mandatory in every
state. The age at which a state allows a person to
drive varies, though it is usually 16. Other

qualifications for a driver’s license include
physical and mental fitness, comprehension of
traffic regulations, and ability to operate a vehicle
competently. Most states require a person to pass
a written examination, an eye test, and a driving
test before being issued a license. States generally
allow an individual with a learner’spermitor
temporary license to operate a vehicle when
accompanied by a licensed driver. This arrange-
ment enables a person to develop the driving
skills needed to qualify for a license. A license can
be revoked or suspended when the motorist
disregards the safety of people and property,
whenaphysicalormentaldisabilityimpairs
driving ability, or if the motorist fails to
accurately disclose information on the license
application. When the state revokes a person’s
license, it permanently denies that person the
right to drive; when it suspends a license, it
temporarily denies the right to drive.
Because teenaged drivers are more likely to
cause traffic accidents, several states have
adopted systems of graduated driver licensing
(GDL). Under this system, teenaged drivers
typically first receive a learner’s permit for about
six months, during which time all driving must
be supervised by an adult. During the next
stage, an intermediate level, teen drivers may
drive at night without the supervision of an
adult during the daytime but cannot drive

without an adult until the age of 18, and cannot
have more than one teenaged passenger in the
car during unsupervised driving times. More
than 30 states and the District of Columbia have
adopted a GDL system.
Traffic Laws Dozens of laws are related to the
operation of an automobile, a large number of
which vary by state. Minor traffic offenses
include parking and speeding violations. More
serious traffic offenses are reckless driving,
leaving the scene of an accident, and driving
without a license. Most states require motorists
to file reports with the proper authorities when
they are involved in accidents.
Speed limits vary by state. In 1973, during
the height of the energy crisis, Congress defined
a national speed limit of 55 mph in order to
reduce gasoline consumption; the 55-mph limit
also had the unintended effect of lowering the
traffic fatality rate. Since then, most states have
returned to an upper limit of 70 mph. Two
types of speed limits are imposed: fixed
maximum and
PRIMA FACIE. Under fixed maxi-
mum limits, it is unlawful to exceed the stated
limit anywhere and at any time. Under prima
facie limits, it is possible for a driver to prove in
certain cases that a speed in excess of the limit
was not unsafe and therefore not unlawful,
given the condition of the highway, amount of

traffic, and other circumstances.
All states require children riding in auto-
mobiles to be restrained using safety belts or
safety seats. Most states require adults to wear
belts as well, though some require belts only for
adults in the front seat. Violation of such laws
results in a fine. In 1984 New York became the
first state to pass a law making seat belts
mandatory for adults.
Driving under the Influence Driving under
the influence of alcohol and other drugs is the
major cause of traffic deaths in the United
States. Drunk driver s kill an estimated 25,000
people per year. States use different terms to
describe driving under the influence of mind-
altering chemicals, or what is popularly known
as “drunk driving.” These include driving under
the influence (DUI), operating under the influence
(OUI), and driving while intoxicated (DWI). To
arrest someone fo r drunk driving, the state
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
454 AUTOMOBILES
must have proof that the person is under the
influence of alcohol or other drugs, and the
person must be in actual physical control of a
vehicle and impaired in the ability to operate it
safely.
Every state has “implied consent” laws that
require those with a driver’s license to submit to
sobriety tests if a police officer suspects they are

intoxicated. These tests may include a field
sobriety test (a test at the scene, such as walking
a straight line), or blood, breath, or urine tests,
usually administered at a police station. Refusal
to take a sobriety test can result in suspension of
the driver’s license. Most states have “per se”
laws that prohibit persons from driving if they
have a blood-alcohol reading above a certain
level. Several states have lowered their per se
blood-alcohol limits to 0.08 percent. Penalties
vary by state but can be particularly severe for
repeat offenders, often involving jail sentences
and
REVOCATION of driving privileges.
DRAMSHOP ACTS make those who sell liquor
for consumption on their premises, such as bars
and restaurants, liable for damages caused by an
intoxicated patron’s subsequent actions. In
some states, individuals injured by a drunk
driver have used such laws to sue bars and
restaurants that served liquor to the driver.
“Social host” statutes make hosts of parties who
serve alcohol and other drugs liable for any
damages or injuries caused by guests who
subsequently drive while under the influence.
Several national organizations have been
formed to combat drunk driving. These include
MOTHERS AGAINST DRUNK DRIVING (MADD) and
Students Against Drunk Driving (SADD). The
legal drinking age has been raised to 21 in every

state, largely in an attempt to reduce drunk
driving. Most states also make it illegal to
transport an open alcoholic beverage container
in a vehicle. Alcohol-related deaths as a
proportion of all traffic deaths decreased from
about 56 percent in 1982 to 47 percent in 1991.
Other Crimes Criminals both target and use
automobiles in a number of different types of
crime. Cars have been a favorite object of theft
ever since their invention. As early as 1919, the
DYER ACT, or National Motor Vehicle Theft Act
(18 U.S.C.A. § 2311 et seq.), imposed harsh
sentences on those who transported stolen
vehicles across state lines. Car theft remains a
serious problem in many areas of the country
and is a major contributor to high insurance
premiums in many urban areas. In 1994
Congress passed the Motor Vehicle Theft
Prevention Act (18 U.S.C.A. § 511 et seq.; 42
U.S.C.A. § 13701 note, § 14171 [West 1995]),
which established a program whereby owners
can regi ster their cars with the government,
provide information on where their vehicles are
usually driven, and affix a decal or marker to the
cars. Owners who register their cars in the
program authorize the police to stop the cars
and question the occupants when the vehicles
are out of their normal areas of operation.
Autos are also frequently used to commit
crimes. Drivers whose

NEGLIGENCE ca u ses acci-
dents that result in the death of other human
beings may be found guilty of
MANSLAUGHTER (the
unlawful killing of another without
MALICE
AFORETHOUGHT
, that is, without the intention of
causing harm through an illegal act), including
criminally negligent manslaughter, a crime
punishable by imprisonment. Two types of
crime that have received a great deal of public
attention are drive-by shootings, in which
occupants of a vehicle fire guns at pedestrians
or at people in other cars, and car-jackings,
in which criminals hijack, or take over, cars from
their owners or operators, often robbing and
sometimes killing the victims in the process.
Because of the usually random nature of such
crimes, the public has called for severe penalties
for them. The
VIOLENT CRIME CONTROL AND LAW
ENFORCEMENT ACT OF
1994 (Pub. L. No. 103-322,
108 Stat. 1796) made killings caused by drive-by
shootings or car-jackings punishable by death.
Insurance Most states require the owner to
acquire auto insurance or deposit a bond before
a vehicle can be properly registered. Insurance
provides compensation for innocent peop le

who suf fer injuries resulting from the negli gent
operation of a vehicle. Other states have
liability, or financial responsibility, statutes that
require a motorist to pay for damages suffered
in an accident resulting from his or her
negligence and to furnish proof of financial
capability to cover damages that he or she may
cause in the future. These statutes do not
necessarily require vehicle liability insurance.
About half of all states require that licensed
drivers carry automobile insurance with liability,
medical, and physical damage coverage. Liability
insurance protects a vehicle owner against
financial responsibility for damages caused by
the negligence of the insured or other covered
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
AUTOMOBILES 455
drivers. It consists of bodily injury, or personal
liability protection and property damage protec-
tion. Medical payments insurance covers the
insured’s household for medical and funeral
expenses that result from an auto accident.
Physical damage insurance consists of collision
coverage, which pays for damage to a car
resulting from collision, regardless of fault, and
comprehensive coverage, which pays for damage
from theft, fire, or
VANDALISM. More than 20 states
also require that drivers carry coverage to protect
against uninsured motorists. Such coverage

allows insured drivers to receive payments from
their own insurer should they suffer injuries
caused by an uninsured driver. Most insurance
policies offer a choice of deductible, which is the
portion of an insurance claim that the insured
must pay. The higher the deductible, the lower
the annual insurance premium or payment.
Many states have laws requiring no-fault
automobile insurance. Under no-fault insur-
ance, each person’s own insurance company
pays for injury or damage in an auto accident,
up to a certain l imit, irrespective of whose
fault the accident is. Each person is entitled to
payment for loss of wages or salary, not
exceeding a certain percentage of the value of
such loss or a fixed weekly amount.
No-fault statutes provide that every person
who receives
PERSONAL INJURY benefits gives up
the right to sue for damages. However, a person
who is licensed to drive in a state that requires
no-fault insurance may sue someone who has
caused an accident and who is licensed in
another state that does not require no-fault
insurance. In some states, a person who has not
obtained no-fault auto insurance is personally
liable to pay damages. Some states do not
abolish liability arising from the ownership,
maintenance, or operation of a motor vehicle in
certain circumstances, such as those in which

the harm was intentionally caused, the injured
person has suffered death or serious injuries, or
medical expenses exceed a certain limit.
States that do not have compulsory auto-
mobile insurance typically have
FINANCIAL
RESPONSIBILITY ACTS
. These laws are designed to
ensure that negligent drivers who injure others
will pay any resulting claims. They require a
proof of financial responsibility from drivers
involved in an accident. After reporting the
accident to a state agency, drivers who do not
have adequate insurance coverage must post a
cash deposit or equivalent bond of up to
$60,000, unless the other driver provides a
written release from liability.
Disposal
The last stage in the life cycle of an automobile
is its disposal and recycling. In the United
States, between 10 and 12 million cars are
disposed of each year. In most cases, the first
stage of disposal is handled by a wrecking or
salvage yard. Most states require the salvage
yard to have the title to an auto before the
vehicle can be destroyed and to contact a state
agency regarding its destruction. This step helps
to prevent the destruction of cars used in
crimes. Salvage yards typically must be licensed
with a state pollution control agency for

hazardous waste dispo sal. Salvage yards remove
parts and items of value that can be recycled from
the vehicle, such as batteries and fluids. What is
left of the automobile is then sold to a shredder, a
business that breaks the car up into small parts
and separates the metal from the nonmetal parts.
Roughly 25 percent of the auto cannot be recycled
and must be disposed of in a landfill. Auto residue
to be disposed of in a landfill typically must be
tested to see that it meets the standards for
disposal of hazardous waste.
FURTHER READINGS
American Automobile Association. 1993. Digest of Motor Laws.
Heathrow, Fla.: American Automobile Association.
“Automobiles.” 1994. In American Bar Association Family
Legal Guide. New York: Random House.
Carper, Donald L., et al. 1995. “Owning and Operating
Motor Vehicles.” In Understanding the Law. 2d ed. St.
Paul, Minn.: West.
Crandall, Robert W., et al. 1986. Regulating the Automobile.
Washington, D.C.: Brookings.
“Detroit Bailout is Set to Bring on More U.S. Oversight.”
New York Times, December 8, 2008.
Goodman, Richard M. 1983. Automobile Design Liability. 2d
ed. Rochester, N.Y.: Lawyers Cooperative.
Haas, Carol. 1991. Your Driving and the Law. Bountiful,
Utah: Horizon.
Kass, Stephen L., and Jean McCarroll. 2008 “Reforming U.S.
Fuel Economy Standards.”New York Law Journal,
January 2, 2008.

Mashaw, Jerry L., and David L. Harfst. 1990. The Struggle for
Auto Safety. Cambridge: Harvard University Press.
Nader, Ralph.1965. UnsafeatAny Speed.New York: Grossman.
Research Institute of America, Inc. 2000. Tax Consequences
of Using Autos for Business. New York: Research
Institute of America.
Winston, Clifford, et al. 1987. Blind Intersection? Policy and
the Automobile Industry. Washington, D.C.: Brookings.
CROSS REFERENCES
Alcohol; Automobile Searches; Collision; Consumer Pro-
tection; Environmental Law; Highway; Import Quotas;
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
456 AUTOMOBILES
Personal Property; Product Liability; Punitive Damages;
Title; Transportation Department.
AUTOPSY
The dissection of a dead body by a medical
examiner or physician authorized by law to do so
in order to determine the cause and time of a
death that appears to have resulted from other
than natural causes.
This postmortem examination, required by
law, is ordered by the local coroner when a
person is suspected to have died by violent or
unnatural means. The consent of the decedent’s
NEXT OF KIN is not necessary for an authorized
autopsy to be held. The medical findings must
be presented at an inquest and might be used as
evidence in a police investigation and a subse-
quent criminal prosecution.

CROSS REFERENCE
Forensic Science.
AUXILIARY
Aiding; ancillary; subordinate; subsidiary.
Auxiliary or
ANCILLARY ADMINISTRATION is the
management and settlement of property be-
longing to a decedent that is not located where
he or she was domiciled. It is subordinate to
the principal or
DOMICILIARY ADMINISTRATION of
the decedent’s property that occurs in the state
where the individual was domiciled. Auxiliary
administration ensures that any local creditors
will be paid before the out-of-state property will
be transferred for distribution under domicili-
ary administration.
CROSS REFERENCE
Estate.
AVER
To specifically allege certain facts or claims in a
pleading.
AVERMENT
The allegation of facts or claims in a pleading.
The Federal Rules of Civil Procedure require
that averments be simple, concise, and direct.
AVOIDABLE CONSEQUENCES
The doctrine that places the responsibility of
minimizing damages upon the person who has
been injured.

The major function of th e doctrine is to
reduce the damages brought about by the
defendant’s m isconduct. Ordinarily, an indi-
vidual cannot recover for losses that might
have been prevented through reasonable effort
by the person, particularly where the conduct
causing the loss or injury is not willful,
intentional, or perpetuated in bad faith. The
rule of avoidable consequences applies to both
contract and tort actions, but is not applicable
in cases involving willful injury or where the
PLAINTIFF could not possibly have circumvented
any of the harm for which he or she claims
damages.
The efforts that the person who has been
injured must take to avoid the consequences of
the misconduct are required to be reasonable,
based upon the circumstances of the particular
case, and subject to the rules of common sense
and fair dealing. That which is reasonably
required is contingent upon the extent of the
potential injury as compared with the cost
of rectifying the situation, and the realistic
likelihood of success in the protective effort.
A plaintiff who neglects to mitigate damages will
not be entirely barred from recovering such
damages that he or she might have circum-
vented through reasonable efforts.
Included in the effort that the law requires is
the payment of reasonable expenditures. The

injured party need not, however, make extraor-
dinary payments to prevent the consequences of
the wrongdoer’s conduct. The plaintiff’s inability
to produce funds to meet the situation presented
can excuse efforts to reduce the injury.
Breach of Contract
A party injured by the breach of contract
generally must exercise reasonable efforts to
lessen the damages. This rule has no application
in an action on a contract for an agreed
compensation. Upon the breach of a contract
to supply
PERSONAL SERVICE or the use of some
type of specific equipment or instrumentality,
the individual who agrees to furnish such service
or items must attempt to acquire a replacement
contract if one can reasonably be found. The
DEFENDANT can then prove, in attempting to
reduce damages, that the plaintiff has procured
other employment as well as the amount he or
she earned or might have earned by exercising
reasonable care and diligence. The test of the
GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION
AVOIDABLE CONSEQUENCES 457