Hertz 2013 Annual Report Download - page 23

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responsible parties, the application of laws and other standards or regulations, site conditions, and the nature and scope of investigations,
studies, and remediation to be undertaken (including the technologies to be required and the extent, duration, and success of remediation).
With respect to cleanup expenditures for the discharge of petroleum substances at, or emanating from, currently and formerly owned or
leased properties, we have received reimbursement, in whole or in part, from certain U.S. states that maintain underground storage tank
petroleum cleanup reimbursement funds. Such funds have been established to assist tank owners in the payment of cleanup costs
associated with releases from registered tanks. With respect to off-site U.S. locations at which our wastes have reportedly been identified, we
have been and continue to be required to contribute to cleanup costs due to strict joint and several cleanup liability imposed by the federal
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 and comparable state superfund statutes.
Environmental legislation and regulations and related administrative policies have changed rapidly in recent years, both in the United States
and in other countries. There is a risk that governmental environmental requirements, or enforcement thereof, may become more stringent
in the future and that we may be subject to legal proceedings brought by government agencies or private parties with respect to
environmental matters. In addition, with respect to the cleanup of contamination, additional locations at which waste generated by us or
substances used by us may have been released or disposed, and of which we are currently unaware, may in the future become the subject
of cleanup for which we may be liable, in whole or in part. Further, at airport-leased properties, we may be subject to environmental
requirements imposed by airports that are more restrictive than those obligations imposed by environmental regulatory agencies.
Accordingly, while we believe that we are in substantial compliance with applicable requirements of environmental laws, we cannot offer
assurance that our future environmental liabilities will not be material to our consolidated financial position, results of operations or cash
flows.
Dealings with Renters
In the United States, car and equipment rental transactions are generally subject to Article 2A of the Uniform Commercial Code, which
governs “leases” of tangible personal property. Car rental is also specifically regulated in more than half of the states of the United States. The
subjects of state regulation include the methods by which we advertise, quote and charge prices, the consequences of failing to honor
reservations, the terms on which we deal with vehicle loss or damage (including the protections we provide to renters purchasing loss or
damage waivers) and the terms and method of sale of the optional insurance coverage that we offer. Some states (including California, New
York, Nevada and Illinois) regulate the price at which we may sell loss or damage waivers, and many state insurance regulators have
authority over the prices and terms of the optional insurance coverage we offer. See “-Risk Management” above for further discussion
regarding the loss or damage waivers and optional insurance coverages that we offer renters. Internationally, regulatory regimes vary greatly
by jurisdiction, but they do not generally prevent us from dealing with customers in a manner similar to that employed in the United States.
Both in the United States and internationally, we are subject to increasing regulation relating to customer privacy and data protection. In
general, we are limited in the uses to which we may put data that we collect about renters, including the circumstances in which we may
communicate with them. In addition, we are generally obligated to take reasonable steps to protect customer data while it is in our
possession. Our failure to do so could subject us to substantial legal liability or seriously damage our reputation.
Changes in Regulation
Changes in government regulation of our businesses have the potential to materially alter our business practices, or our profitability.
Depending on the jurisdiction, those changes may come about through new legislation, the issuance of new laws and regulations or
changes in the interpretation of existing laws and regulations by a court, regulatory body or governmental official. Sometimes those changes
may have not just prospective but also retroactive effect; this is particularly true when a change is made through reinterpretation of laws or
regulations that have been in effect for some time. Moreover, changes in regulation that may seem neutral on their face may have either
more or less impact on us than on our competitors, depending on the circumstances. Several U.S. State Attorneys General have taken the
position that car rental companies either may not pass through to customers, by means of separate charges, expenses such as vehicle
licensing and concession fees or may do so only in certain limited circumstances. Recent or potential changes in law or regulation that affect
us relate to insurance intermediaries, customer privacy and data security and rate regulation, each as described under “Item 1A—Risk
Factors” in this Annual Report.
In addition, our operations, as well as those of our competitors, also could be affected by any limitation in the fuel supply or by any imposition
of mandatory allocation or rationing regulations. We are not aware of any current proposal to impose such a regime in the United States or
internationally. Such a regime could, however, be quickly imposed if there were a serious disruption in supply for any reason, including an
act of war, terrorist incident or other problem affecting petroleum supply, refining, distribution or pricing.
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Source: HERTZ CORP, 10-K, March 31, 2014 Powered by Morningstar® Document Research℠
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