Legal Question in Business Law in California

Re: Car Giveaway

Your question is a bit too general. There can be several issues as to who you want to qualify for the vehicle...(i.e. age, licensed driver, insurance etc..), among others.

You would be well advised to have general counsel for your business to review and help in drafting promotions such as this.

Please feel free to contact me to discuss further.

Re: Car Giveaway

You are asking for a legal opinion, and that is what we live from. Our CA attorney can advise you on this.

Re: Car Giveaway

It's complicated. Among the issues are avoiding being an illegal lottery (hint: No Purchase Necessary); and there have been mishaps such as the soft drink promotion that had 10,000 first prize winners. Suggest you hire a company that manages such promotions (an independent judging organization, as it says on the back of the game pieces.)

Re: Car Giveaway

The Penal Code has a definition for lottery at PC 319: "A lottery is any scheme for the disposal or distribution of property by chance, among persons who have paid or promised to pay any valuable consideration for the chance of obtaining such property or a portion of it, or for any share or any interest in such property, upon any agreement, understanding, or expectation that it is to be distributed or disposed of by lot or chance, whether called a lottery, raffle or gift enterprise, or by whatever name the same may be known."

PC 320 continues, "Every person who contrives, sets up, proposes, or draws any lottery, is guilty of a misdemeanor.

PC section 320.5 provides a means by which certain charities can legally conduct raffles.

Since "consideration" could include the purchase of an admission ticket to one of your facilities, you should be very, very cautious about your proposed "giveaway."

Also, I'd recommend limiting eligibility to persons 18 and over, and perhaps to licensed drivers in good standing with the DMV.