Chapter 291 Oregon Laws 2001

AN ACT

SB 597

Relating to liability arising out of use of motor vehicles; amending ORS 30.135.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 30.135 is amended to read:

30.135. (1) Subject to the provisions of this section, a person that [loans] lends, rents, donates use of, makes available for test drive or otherwise provides a motor vehicle, as defined in ORS 801.360, to another person is not liable for any injury, death or damage that arises out of the use of that motor vehicle by the other person, unless the person providing the motor vehicle is negligent in maintaining the motor vehicle or in providing the motor vehicle and the injury, death or damage results from that negligence.

(2) The limitation on liability provided by this section applies only if the person providing the motor vehicle is engaged in the business of selling, renting, leasing or repairing motor vehicles and the motor vehicle is provided to another person in the course of that business.

(3) The limitation on liability provided by this section applies only if there is a written agreement between the person providing the motor vehicle and the person receiving the motor vehicle, and the agreement specifically indicates that the person receiving the motor vehicle is liable for any injury, death or damage arising out of the use of the motor vehicle. The limitation on liability provided by this section applies to injury, death or damage suffered during the period specified in the written agreement, or until the return of the motor vehicle, whichever is later.

(4) Notwithstanding ORS 742.526, unless a written agreement under subsection (3) of this section provides otherwise, any insurance that is available to a person receiving a motor vehicle under a written agreement described in subsection (3) of this section is primary, and any insurance available to the person providing the motor vehicle is secondary or excess insurance. If the person receiving the motor vehicle uses the motor vehicle in the course of the person’s employment, any insurance that is available to an employer of the person providing coverage for motor vehicles operated by employees of the employer is also primary, and any insurance available to the person providing the motor vehicle is secondary or excess insurance.

(5) The limitation on liability provided by this section applies without regard to whether the motor vehicle is provided for consideration or is provided without charge.

(6) Nothing in this section affects the liability of a manufacturer, distributor, seller or lessor of a product under the provisions of ORS 30.900 to 30.920.

Approved by the Governor June 4, 2001

Filed in the office of Secretary of State June 4, 2001

Effective date January 1, 2002

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