Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Driverless Cars: Balancing the Risks vs. the Rewards

Author: Scarinci Hollenbeck, LLC

Date: October 28, 2014

Key Contacts

Back

Audi recently made headlines when its driverless car reached speeds of nearly 150 miles per hour. Google also unveiled its latest iteration of the self-driving car this past summer. Unlike prior designs, which retained steering wheels, brakes, and gas pedals, the tech giant’s latest model completely removes the driver from the equation.

While the timeline is not yet established, self-driving vehicles are likely the destined for a road near you. In addition to Audi and Google’s efforts, Daimler, Volvo, Toyota, Tesla and BMW are all working on autonomous vehicle technology.

The primary benefit of driverless vehicles — whether we are talking about cars, trains, or buses — is safety. There are 5.5 million traffic collisions in the United States every year, of which 81 percent are attributable to human error. According to Google, its self-driving vehicles have traveled 700,000 miles without an accident. Given the statistics, its experts predict that crashes could decrease by a much as 90 percent.

As beneficial as autonomous cars may be, they still face significant hurdles. First, regulators must get on board by allowing the vehicles on the road. Second, manufacturers must convince consumers that they are safe.

Regulating Driverless Vehicles

Some states have implemented regulations to address driverless cars, which are already on the road for testing. In California, operators of autonomous vehicles must undergo special training and be capable of taking over control in the case of an emergency. Manufacturers must report any type of accident or any situation where the autonomous technology disengages during operation to the state’s Department of Motor vehicles within 10 days. They must also maintain $5 million insurance or surety bond.

While these laws are a good first step, federal and state laws will likely need a significant overhaul before driverless cars are made widely available. From a road safety standpoint, key questions include: who is liable for accidents caused by self-driving cars, the human passenger or the carmaker; who is responsible for traffic violations, such as failing to yield or stop at a red light, if the vehicle was operating autonomously; how will impaired driving and distracted driving laws be enforced if occupants are not technically “driving?”

Cybersecurity is also a top legal concern, given that computers would largely usurp the roles of drivers. The Federal Bureau of Investigation is closely tracking the technology, citing concerns that hackers could take over automated vehicles and use them as “lethal weapons.”

Automakers are also addressing the risks. “The biggest stumbling block to any of these things is car security and also liability,” said Gavin Ward, a spokesman for BMW. “Those are the sort of issues that are still being worked out.”

What’s Next for Self-Driving Cars?

Autonomous vehicle technology is predicted to become an $87 billion market by 2030, according to Lux Research. However, self-driving cars may not be good news for all businesses. If autonomous vehicles do become the norm, they could have a significant impact on the traditional business models employed in a number of industries, including car manufacturing, transportation, and auto insurance. Accordingly, we will be closely monitoring the technological and legal developments.

If you have any questions about how autonomous vehicle technology may impact your business or would like to discuss the legal issues involved, please contact me or the Scarinci Hollenbeck attorney with whom you work. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them post image

Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them

The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]

Author: Paul Grossman

Link to post with title - "Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them"
When a Child Turns 18: The Gap in Your Family’s Estate Plan post image

When a Child Turns 18: The Gap in Your Family’s Estate Plan

Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]

Author: George McGowan

Link to post with title - "When a Child Turns 18: The Gap in Your Family’s Estate Plan"
Business Mediation: An Overview and Practical Tips post image

Business Mediation: An Overview and Practical Tips

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]

Author: Paul Grossman

Link to post with title - "Business Mediation: An Overview and Practical Tips"
Top 5 Causes Leading to Construction Defect Litigation post image

Top 5 Causes Leading to Construction Defect Litigation

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]

Author: Paul Grossman

Link to post with title - "Top 5 Causes Leading to Construction Defect Litigation"
How to Protect Your New Jersey Business When Going through a Divorce post image

How to Protect Your New Jersey Business When Going through a Divorce

The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]

Author: Jay McDaniel

Link to post with title - "How to Protect Your New Jersey Business When Going through a Divorce"
10 Common Issues in Franchise Disputes post image

10 Common Issues in Franchise Disputes

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]

Author: Paul Grossman

Link to post with title - "10 Common Issues in Franchise Disputes"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!