Under vicarious liability laws, motor vehicle lessors in the United States have in the recent past been forced to pay significant damages when lessees driving leased vehicles have been involved in accidents. Under these laws, liability has been imposed on a lessor merely because the lessor is the registered or titled owner of the motor vehicle, even though the lessor was not in control of the motor vehicle or negligent in its use or operation.rnThe 2005 enactment of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users ("Transportation Equity Act"), which contained the Graves Amendment, appeared to signal the end of the road for vicarious liability. Because the Graves Amendment expressly preempts all state vicarious liability schemes that impose liability on motor vehicle lessors where the leased vehicle is involved in an accident through no fault of the lessor, it has seemingly insulated motor vehicle lessors from exposure to one of the most significant risks of leasing or renting a motor vehicle.
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