Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: October 28, 2014
The Firm
201-896-4100 info@sh-law.comAudi 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.
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.”
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.

Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe

In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer

Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel

For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan

The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe

Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!