Legal Question in Business Law in California

Driving a group

I was thinking of setting up a service where periodically I would have people sign up to go on a trip downtown for shopping. I first thought of a charter bus (too expensive). Can I rent a mini van and drive 3-4 people without a huge liability issue? I would be charging them a fee to cover the rental, gas, etc. and we would drive about 35 miles one way, park, walk around the downtown shopping area, drive back. Thank you for your time.


Asked on 9/15/07, 9:56 am

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Driving a group

As long as you form a corporation for the business, and get a commercial chauffeur's license, and proper business permits, and proper vehicle and liability insurance, no problem. Contact me if you want to do it right and stay out of jail and courtrooms.

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Answered on 9/17/07, 2:14 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Driving a group

There is a "liability issue" that is dormant so long as nothing happens, but could become huge. Among other things, you would be classified as a common carrier (well, probably) and as such would have strict liability for injuries and property damage rather than liability based on your negligence. You would need a heqvy-duty insurance policy, and not every insurance agent is able to procure a policy for a for-hire carrier; you might have to find a specialist.

Further, this business (buses, taxis, jitneys, etc.) is highly regulated at the state and local level (and could involve federal regulation but only if there were an interstate aspect to your passeners' travel itineraries). You would probably need a permit from the California Public Utilities Commission and maybe some kind of local permit or license.

There might be some kind of exemption in the CPUC's regulations for very small operations or where all the passengers had an affinity, e.g. members of the same church or retirement community, so you wouldn't be a common carrier. Ask the CPUC.

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Answered on 9/15/07, 2:01 pm


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