A recent article in the Detroit Free Press discussed potential liability of rental car companies that rent vehicles involved in recalls. Does a delay in compliance to the recall by the rental car company relieve the manufacturer of liability?
I would respectfully suggest that while there may not be any statutory law that requires such action by the rental car companies, common law certainly does. Imagine the potential liability issues involved where a company gets actual notice a car may be defective, then puts it out on the road armed with that knowledge (witness the cited California Enterprise case as but one example). I would also wonder about the possibility of a defense akin to a learned intermediary doctrine urged to help insulate the manufacturer in such an instance.
But then, I could be wrong.