A Car-sharing Program is fundamentally defined as a business platform designed to connect vehicle owners with drivers, facilitating the sharing of vehicles for financial consideration. This arrangement, often referred to as peer-to-peer car sharing, enables individuals to utilize vehicles owned by others through a structured program.
This concept of a car-sharing program specifically excludes traditional car rental services. Legally and operationally, it is distinct from businesses that primarily “rent a motor vehicle to another.” This distinction is crucial in understanding the regulatory and legal framework surrounding car sharing. Car-sharing programs are not considered “rental companies” or “rentors” as defined under various acts such as the Renter’s Financial Responsibility and Protection Act and the Automobile Renting Occupation and Use Tax Act. Furthermore, they are not classified as being “engaged in the business of renting automobiles” under the Counties Code or the Illinois Municipal Code.
Within the framework of car sharing, several key terms are defined to clarify the operational aspects:
Peer-to-peer car sharing: This specifically refers to the authorized use of a vehicle by someone other than the vehicle’s owner, which is made possible through a car-sharing program. It’s important to reiterate that this is not considered traditional vehicle rental.
Car-sharing agreement: This is the set of terms and conditions that govern the relationship between the vehicle owner and the driver using the shared vehicle. This agreement is established through the car-sharing program and outlines the responsibilities and liabilities of both parties during the car-sharing period. Significantly, this agreement is also legally separate from typical “rental agreements” as defined in various sections of the Illinois Vehicle Code and the Renter’s Financial Responsibility and Protection Act.
Car-sharing period: This defines the duration of vehicle use. It begins at the “car-sharing start time,” which is when the driver gains control of the vehicle as scheduled in the car-sharing program’s records. The period concludes at the “car-sharing termination time.”
Car-sharing start time: This is precisely documented by the car-sharing program and marks the point when the driver officially takes control of the vehicle, initiating the car-sharing period.
Car-sharing termination time: This is the point at which the car-sharing period ends. It is defined as the earliest occurrence of several potential events, primarily the expiration of the agreed-upon rental period.
Understanding these definitions is crucial for both participants and regulators in the car-sharing industry. By clearly delineating car-sharing programs from traditional rental services, the legal framework provides a specific context for this evolving mode of transportation.
