California, United States of America
The following excerpt is from Dillon v. Suburban Motors, Inc., 166 Cal.App.3d 233, 212 Cal.Rptr. 360 (Cal. App. 1985):
Liability under Vehicle Code section 14606 is predicated in two factors: (1) an ownership interest in the vehicle and (2) actual knowledge or knowledge of facts giving reasonable notice of lack of a license. In Johnson v. Casetta, supra, 197 Cal.App.2d at pages 275-276, 17 Cal.Rptr. 81, in which a nonsuit in the opening statement was reversed, the court refused to extend the predecessor section of Vehicle Code section 14606 to encompass a vehicle seller's liability because the plaintiffs did not claim defendants had knowledge their buyer was unlicensed, only knowledge that he was an incompetent driver. In gratuitous dicta, the court added "It should be noted, in passing, that the section does not prohibit the sale of a motor vehicle to an unlicensed person. Many car buyers are not licensed to drive but have others, such as employees, drive. The purpose of the section is to deter driving by unlicensed persons." (Id., at pp. 275-276, 17 Cal.Rptr. 81; original italics.)
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