TDVL Risk Management and Liability 3 — Questions and Answers
Question 1: What is the purpose of a 'trip manifest' or ride log in taxi operations from a risk management perspective?
- It allows drivers to overcharge passengers
- It creates a verifiable record that can support the driver in disputes or accidents (Correct answer)
- It replaces the need for commercial insurance
- It is only required for airport trips
Correct answer: It creates a verifiable record that can support the driver in disputes or accidents
A trip manifest provides documented evidence of routes, times, and passengers, which is invaluable if a dispute or incident arises.
Question 2: A passenger slips on wet flooring inside your taxi and is injured. Under premises liability principles, you could be found liable because:
- You are always liable regardless of cause
- You have a duty to maintain a safe interior environment for passengers (Correct answer)
- The manufacturer of the vehicle is solely responsible
- Slips inside vehicles are not legally actionable
Correct answer: You have a duty to maintain a safe interior environment for passengers
Drivers and operators have a duty to keep the vehicle interior reasonably safe, and wet flooring they knew or should have known about can establish liability.
Question 3: Which of the following MOST reduces a driver's exposure to assault-related liability?
- Carrying a weapon for self-defense
- Installing a security partition, dash cam, and panic button (Correct answer)
- Refusing to transport any male passengers alone
- Operating only during daylight hours
Correct answer: Installing a security partition, dash cam, and panic button
Physical barriers, recording devices, and panic systems deter assaults and provide evidence, significantly reducing both risk and liability.
Question 4: When a driver's commercial auto policy lapses, what is the immediate consequence regarding liability?
- The driver's personal auto policy automatically covers taxi use
- The driver operates without required coverage and is personally liable for all damages (Correct answer)
- The taxi company's general liability policy takes over
- There is a 30-day grace period with full coverage
Correct answer: The driver operates without required coverage and is personally liable for all damages
A lapsed commercial policy leaves the driver fully personally liable for any damage or injuries that occur while operating without valid coverage.
Question 5: What does 'negligent entrustment' mean for a taxi company that allows an unlicensed driver to operate a vehicle?
- The company is immune from liability since the driver is an independent contractor
- The company can be held liable for entrusting a vehicle to an unqualified person (Correct answer)
- Only the driver faces penalties, not the company
- Negligent entrustment only applies to personal vehicles
Correct answer: The company can be held liable for entrusting a vehicle to an unqualified person
Negligent entrustment holds companies liable when they knowingly allow incompetent or unqualified individuals to operate their vehicles.
Question 6: A driver refuses to transport a passenger with a service animal. What legal risk does this create?
- No risk — drivers can refuse any passenger
- Potential ADA discrimination claim and license sanctions (Correct answer)
- Only a minor fine with no civil exposure
- Risk only exists if the animal causes damage
Correct answer: Potential ADA discrimination claim and license sanctions
Refusing a passenger with a service animal violates the Americans with Disabilities Act and can result in civil complaints and regulatory penalties.
Question 7: Which scenario BEST illustrates 'respondeat superior' liability in a taxi context?
- A driver's personal car is damaged at home
- A taxi company is sued because its employed driver caused an accident while on duty (Correct answer)
- A passenger sues a fellow passenger for an in-vehicle altercation
- A driver is personally sued for an off-duty speeding ticket
Correct answer: A taxi company is sued because its employed driver caused an accident while on duty
Respondeat superior holds employers vicariously liable for employee torts committed within the scope of employment, such as an on-duty accident.
TDVL Risk Management and Liability 3
What is the purpose of a 'trip manifest' or ride log in taxi operations from a risk management perspective?