Bike and Car Renting Laws in Telangana

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Posted on | by pritesh K

Telangana has implemented specific regulations governing bike and car rental services to ensure safety, compliance, and consumer protection.

Table of Contents

1. Introduction

The Telangana Transport Department oversees the operation of vehicle rental services within the state. These services are regulated under frameworks such as the Rent-a-Cab Scheme, 1989, and the Rent a Motor Cycle Scheme, 1997, as adopted by the state. These regulations aim to standardize rental operations, ensure vehicle safety, and protect consumer interests.

2. Policies and Regulatory Framework

The primary policies governing vehicle rentals in Telangana include:

  • Rent-a-Cab Scheme, 1989: Regulates the rental of motor cabs, ensuring operators are licensed and adhere to safety standards.
  • Rent a Motor Cycle Scheme, 1997: Governs the rental of motorcycles, mandating proper registration and compliance with safety norms.
  • Telangana Motor Vehicles Rules: State-specific adaptations of central motor vehicle regulations, detailing operational guidelines for rental services.

1. Rent-a-Cab Scheme, 1989

This scheme regulates the rental of motor cabs in India, including Telangana. It ensures that operators are compliant with safety standards and licensing requirements.

  • Step 1: License Requirement – Operators must obtain a valid permit/license for operating motor cabs.
  • Step 2: Safety Standards – Vehicles used for rental purposes must meet specific safety guidelines set by the transport authorities.
  • Step 3: Insurance – The vehicle must be insured with third-party insurance coverage.
  • Step 4: Operational Area – Cabs can be rented only in specific areas as authorized by the transport department.
  • Step 5: Rental Charges – There are regulations on how rental charges are structured, including fare regulations and maximum allowable charges.
  • Step 6: Passenger Safety – Operators must ensure safety measures such as seat belts, airbags, and other vehicle safety features.

2. Rent a Motor Cycle Scheme, 1997

This scheme governs the rental of motorcycles in Telangana and across India.

  • Step 1: Registration of Vehicles – Motorcycles must be registered with the Regional Transport Office (RTO).
  • Step 2: Operator License – Rental operators must obtain a permit to rent out motorcycles.
  • Step 3: Safety Compliance – Motorcycles must comply with safety regulations, including proper functioning of brakes, lights, and other crucial components.
  • Step 4: Age Limit for Renters – Renters must be of a certain age (usually 18 years or older) and must hold a valid driving license.
  • Step 5: Rental Documentation – Renters must provide identification and a valid driving license for verification.
  • Step 6: Insurance Coverage – Motorcycles must have third-party insurance.
  • Step 7: Helmet Requirement – Renters must wear helmets while operating motorcycles.

3. Telangana Motor Vehicles Rules

These are state-specific rules that adapt and modify the central motor vehicle regulations for Telangana.

  • Step 1: Vehicle Registration – All vehicles, including rental vehicles, must be registered with the Telangana Regional Transport Office (RTO).
  • Step 2: Fitness Certification – Rental vehicles must undergo regular fitness checks to ensure they meet safety and environmental standards.
  • Step 3: Permit and Licensing – Operators of rental vehicles must hold valid permits and licenses from the RTO. This includes passenger vehicle licenses for cabs and two-wheeler rental licenses.
  • Step 4: Tax Compliance – Rental operators must ensure timely payment of road taxes applicable to their vehicles.
  • Step 5: Control of Traffic Violations – Operators must ensure that their vehicles and drivers comply with traffic rules, including the provision of proper documentation like insurance, pollution check certificates, and fitness certificates.
  • Step 6: Driver Licensing – Drivers must have valid driving licenses and meet any additional criteria set by the state regulations.
  • Step 7: Operational Guidelines – There are rules on the operation of rental vehicles, including routes, permissible usage, and areas of operation.

3. Terms and Conditions

Operators and renters must adhere to the following terms and conditions:

  • Vehicle Registration: All rental vehicles must possess commercial registration, identifiable by yellow number plates with black text. Utilizing privately registered vehicles (white plates with black text) for rental purposes is prohibited.
  • Rental Agreements: A formal rental agreement outlining the rental period, charges, and responsibilities must be executed between the operator and the renter.
  • Insurance: Operators are required to provide comprehensive insurance coverage for all rental vehicles.

1. Vehicle Registration

  • Commercial Registration: All rental vehicles must have commercial registration.
  • Identification: These vehicles are identifiable by yellow number plates with black text.
  • Prohibition on Private Vehicles: It is prohibited to use privately registered vehicles (those with white plates and black text) for rental purposes.

2. Rental Agreements

  • Formal Agreement: A rental agreement must be created between the operator and the renter.
  • Details in the Agreement: The rental agreement must clearly outline:
    • Rental Period: The duration for which the vehicle is rented.
    • Charges: The total rental cost for the period.
    • Responsibilities: Specific responsibilities of both the operator and renter during the rental period.

3. Insurance

  • Coverage Requirement: Operators are required to provide comprehensive insurance coverage for the rental vehicles.
  • Protection: This ensures both the vehicle and the renter are protected in case of accidents or damages during the rental period.

4. Eligibility Criteria

To rent a vehicle, individuals must meet the following criteria:

  • Age Requirement: Renters must be at least 18 years old.
  • Driving License: A valid driving license appropriate for the vehicle category is mandatory. International Driving Permits are required for foreign nationals.

1. Age Requirement

  • Renters must be at least 18 years old to be eligible to rent a vehicle.
  • Some rental services might have a minimum age requirement of 21 or 25 depending on the type of vehicle (e.g., cars, bikes, etc.), or if the renter is a first-time customer.
  • Ensure you verify with the rental service if they have any upper age limit or other specific age conditions.

2. Driving License

  • Renters must hold a valid driving license that is appropriate for the type of vehicle they wish to rent (e.g., motorcycle, car, etc.).
  • International Driving Permits (IDPs) are required for foreign nationals. This is necessary if the individual’s driving license is not in the local language or is issued in another country.
    • For foreign nationals, it is important to check whether their country of origin’s driving license is accepted in the rental location.
  • The license should have been valid for at least one year in most cases, although some rental agencies may ask for a longer history of driving experience.
  • Make sure the license is not expired, suspended, or invalid in any way.

3. Payment Information

  • Renters are usually required to provide payment details, such as a credit card, at the time of rental to secure the vehicle and cover any potential damages or late fees.
  • Some rental services may accept debit cards or cash, but credit cards are more commonly used for convenience and security.

4. Additional Documentation

  • In some cases, rental services may require proof of identity (e.g., passport, Aadhar card, or government-issued ID).
  • If renting for long-term periods or renting a specific vehicle type (e.g., luxury cars), further verification may be requested, such as bank statements or proof of address.

5. Vehicle-specific Conditions

  • For certain types of vehicles (e.g., motorcycles, luxury cars, etc.), the rental service may have additional requirements such as:
    • Security deposit: Some companies may require a security deposit, which is refundable upon the return of the vehicle in good condition.
    • Vehicle-specific age restrictions: Some vehicles may require the renter to be a certain age (e.g., for sports cars or heavy vehicles).

6. Driving History

  • Some rental companies may review the renter’s driving history and may reject individuals with a record of significant violations or traffic offenses.
  • It’s a good idea to ensure you have no major infractions that could affect your eligibility.

7. Insurance Requirements

  • Most rental services offer insurance or coverage options. It’s important to understand the available plans and ensure that the renter is either covered by the rental agency’s insurance or has personal insurance for the vehicle.
  • Liability insurance and collision damage waivers (CDW) are commonly included or available for purchase.

5. Documents Required

Renters are typically required to provide:

  • Driving License: Original and a photocopy.
  • Government-Issued ID Proof: Such as Aadhaar card, passport, or voter ID.
  • Address Proof: Utility bills or rental agreements if the address differs from the ID proof.
  • Security Deposit: Refundable deposit as stipulated by the rental operator.

1. Driving License

  • What you need:
    • The original driving license.
    • A photocopy of the driving license.
  • Purpose: To ensure the renter is legally allowed to drive the vehicle.

2. Government-Issued ID Proof

  • What you need:
    • A government-issued ID such as:
      • Aadhaar card
      • Passport
      • Voter ID
  • Purpose: To verify the identity of the renter.

3. Address Proof

  • What you need:
    • Documents that prove your current address. If your address is not mentioned on the ID proof, you can provide:
      • Utility bills (e.g., electricity, water, or gas bills)
      • Rental agreements if applicable.
  • Purpose: To verify your place of residence.

4. Security Deposit

  • What you need:
    • A refundable security deposit (the amount is set by the rental operator).
  • Purpose: To cover potential damages or violations during the rental period.

6. Financial Aspects

The following table outlines the financial responsibilities associated with vehicle rentals:

ExpenseResponsibility
Fuel CostTypically borne by the renter. Vehicles are provided with sufficient fuel to reach the nearest refueling station. gearzvehicle.com
Interstate TaxesPaid by the renter if the vehicle is taken out of Telangana.
Parking ChargesBorne by the renter.
Toll TaxesBorne by the renter.
GSTApplicable on rental charges as per prevailing rates.

1. Fuel Cost

  • Responsibility: Typically borne by the renter.
  • Details: The vehicle is provided with enough fuel to reach the nearest refueling station. After this, the renter is responsible for refueling the vehicle as needed during the rental period.

2. Interstate Taxes

  • Responsibility: Paid by the renter if the vehicle is taken out of Telangana.
  • Details: If the renter plans to take the vehicle outside of Telangana, they will be required to pay any applicable interstate taxes. This typically involves additional charges due to the vehicle being driven across state borders.

3. Parking Charges

  • Responsibility: Borne by the renter.
  • Details: The renter is responsible for paying any parking charges incurred during the rental period. These charges can vary depending on the parking location, duration, and local regulations.

4. Toll Taxes

  • Responsibility: Borne by the renter.
  • Details: The renter is required to pay any toll taxes while using toll roads during the rental period. These charges are typically incurred when traveling on highways or expressways that have toll booths.

5. GST (Goods and Services Tax)

  • Responsibility: Applicable on rental charges as per prevailing rates.
  • Details: GST is charged on the rental charges based on the prevailing rate in India. The renter will need to pay GST in addition to the base rental amount.

7. Inclusions and Exclusions

  • Inclusions:
    • One helmet provided with bike rentals, as wearing a helmet is mandatory.
    • Basic maintenance tools and first-aid kit.
  • Exclusions:
    • Fuel expenses.
    • Fines for traffic violations incurred during the rental period.
    • Additional accessories unless specified.

Inclusions:

  1. Helmet Provided:
    • One helmet is included with each bike rental.
    • Wearing a helmet is mandatory for all renters, ensuring safety during the ride.
  2. Basic Maintenance Tools:
    • A basic set of maintenance tools will be included with the bike rental. These tools will cover minor issues that may arise during the rental period, allowing you to make quick fixes.
  3. First-Aid Kit:
    • A first-aid kit will be provided along with the bike, offering basic medical supplies in case of minor injuries during the rental period.

Exclusions:

  1. Fuel Expenses:
    • Fuel costs are not included in the bike rental price. Renters will need to cover the cost of fuel during their rental period.
  2. Traffic Violation Fines:
    • Any fines incurred for traffic violations (e.g., speeding, parking violations) during the rental period will be the responsibility of the renter. These fines will not be covered by the rental agreement.
  3. Additional Accessories:
    • Extra accessories, such as additional helmets, bags, or any custom equipment, are not included unless specifically mentioned in the rental agreement.

8. Vehicle Maintenance and Repairs

  • Operator’s Responsibility: Ensure all vehicles are well-maintained and meet safety standards.
  • Renter’s Responsibility: Report any mechanical issues immediately. Unauthorized repairs by the renter are discouraged.

1. Pre-Rental Vehicle Inspection

  • Operator’s Responsibility:
    • Conduct a thorough inspection of the vehicle before renting it out.
    • Check tires, brakes, lights, oil, coolant, and any other essential systems to ensure the vehicle is in good condition.
    • Record and photograph the condition of the vehicle before it is handed over to the renter.
  • Renter’s Responsibility:
    • Ensure that the vehicle condition matches the description and images provided by the operator.
    • Report any noticeable issues immediately.

2. Vehicle Usage and Maintenance During Rental Period

  • Operator’s Responsibility:
    • Ensure that regular maintenance (e.g., oil changes, tire checks) is up to date before renting the vehicle.
    • Provide renters with guidelines on how to operate the vehicle safely.
  • Renter’s Responsibility:
    • Drive the vehicle according to the manufacturer’s recommendations and guidelines.
    • Ensure regular checks of tire pressure, fluid levels, and lights while using the vehicle.

3. Mechanical Issues During the Rental Period

  • Operator’s Responsibility:
    • Make sure that contact details for emergency support and mechanical assistance are provided to the renter.
    • If a mechanical issue arises, guide the renter on what to do next (e.g., emergency repair services).
  • Renter’s Responsibility:
    • Report any mechanical issues (e.g., strange noises, poor engine performance, warning lights) immediately to the operator.
    • Avoid driving the vehicle if the mechanical issue presents a safety concern.

4. Unauthorized Repairs by the Renter

  • Operator’s Responsibility:
    • Clearly inform renters that unauthorized repairs are discouraged.
    • Specify the procedures for addressing mechanical issues rather than allowing renters to attempt fixes themselves.
  • Renter’s Responsibility:
    • Do not attempt repairs or tamper with the vehicle’s mechanical systems without operator approval.
    • If issues occur that require professional attention, contact the operator first for instructions.

5. Post-Rental Vehicle Inspection

  • Operator’s Responsibility:
    • Inspect the vehicle upon return to ensure there are no new issues or damage.
    • Check the vehicle’s condition against the pre-rental inspection notes and photographs.
  • Renter’s Responsibility:
    • Return the vehicle in the same condition as when it was rented (excluding normal wear and tear).
    • Notify the operator of any issues that occurred during the rental period, even if the renter was unable to resolve them.

6. Maintenance and Repair Costs

  • Operator’s Responsibility:
    • Ensure all maintenance costs are accounted for in the rental terms.
    • Set a clear policy on whether the renter is liable for mechanical repairs and under what circumstances.
  • Renter’s Responsibility:
    • Understand the terms regarding liability for repairs and maintenance costs, particularly in case of accidents or neglect.

7. Regular Vehicle Maintenance (Post-Rental)

  • Operator’s Responsibility:
    • Conduct routine maintenance checks after the vehicle is returned, regardless of the rental duration.
    • Address any new mechanical issues identified during the post-rental inspection.

9. Vehicle Return Policy

  • Timely Return: Vehicles must be returned at the agreed-upon time to avoid late fees.
  • Condition: The vehicle should be returned in the same condition as at the time of rental, barring normal wear and tear.

1. Timely Return

  • Agreement on Return Time: The vehicle should be returned at the time specified in the rental agreement.
  • Late Fees: If the vehicle is returned after the agreed-upon time, a late fee will be applied. The late fee amount should be clearly stated in the rental agreement.

2. Condition of the Vehicle

  • Same Condition as Rented: The vehicle must be returned in the same condition as it was when rented out.
  • Normal Wear and Tear: Normal wear and tear (e.g., minor scuff marks, tire wear, etc.) are acceptable. However, any significant damage caused during the rental period is the responsibility of the renter.
  • Inspection Upon Return: A vehicle inspection should be done upon return to check for any damages or issues. Any damages beyond normal wear and tear will be charged to the renter.

3. Fuel Policy

  • Full Tank Requirement: The vehicle should be returned with a full tank of fuel, unless otherwise stated in the rental agreement.
  • Fuel Charges: If the vehicle is returned with less fuel than received, fuel charges will apply according to the fuel level.

4. Cleaning

  • Clean Vehicle Return: Renters should return the vehicle in a reasonably clean condition.
  • Cleaning Charges: If the vehicle requires extra cleaning beyond what is expected (e.g., significant dirt, stains, etc.), cleaning fees may apply.

5. Returning Keys

  • Key Return: The keys must be returned with the vehicle at the agreed time.
  • Lost Keys: If the keys are lost or not returned, a replacement fee will be charged.

6. Documentation

  • Return of Documents: Any documents (e.g., rental agreement, insurance papers) must be returned with the vehicle, as specified in the agreement.

7. Penalties for Breach

  • Late Return Penalty: Charges for late returns should be clearly outlined (e.g., hourly or daily late fee).
  • Damage Charges: Charges for damages should be clearly stated (for repairs, parts, etc.).
  • Fuel or Cleaning Charges: Costs for refueling or cleaning should be provided in the agreement.

10. Renter’s Liability

Renters are liable for:

  • Any damage caused to the vehicle due to negligence.
  • Fines resulting from traffic violations during the rental period.

1. Damage Caused to the Vehicle

  • Negligence: Renters are responsible for any damage caused to the vehicle if the damage results from negligence. This includes actions such as:
    • Driving under the influence of alcohol or drugs
    • Driving recklessly or violating traffic laws
    • Failing to take proper care of the vehicle (e.g., leaving it unlocked or not following safety guidelines)
    • Allowing unauthorized drivers to operate the vehicle
  • Assessing Damage: At the time of renting the vehicle, a detailed inspection report should be conducted. If any damage occurs during the rental period, the renter may be required to cover the repair costs.

2. Fines Resulting from Traffic Violations

  • Traffic Violations: Renters are liable for any fines incurred due to traffic violations during the rental period. This includes:
    • Speeding
    • Illegal parking
    • Running red lights
    • Failing to yield or other similar infractions
  • Payment of Fines: The renter is expected to pay any fines directly or through a fine payment process set by the rental agency. If the rental company receives a ticket on behalf of the renter, they may charge the renter for the fine along with any administrative fees.
  • Notification of Violations: Rental agencies usually inform renters about any fines that arise after the rental period and request payment within a specified time frame.

3. Insurance Coverage

  • Damage Insurance: Renters may be offered the option to purchase additional insurance coverage for the vehicle. This can help reduce liability in case of damage.
  • Third-party Insurance: Renters should verify if their personal insurance or a credit card offers coverage for rental cars, which can help reduce out-of-pocket expenses in the event of an accident or damage.

4. Exclusions and Limitations

  • Excluded Damage: Some damage types, such as intentional damage, damage caused by driving off-road, or failure to follow rental agreement rules, may not be covered under insurance or rental policies.
  • Liability Caps: Many rental companies have a liability cap, limiting the maximum amount renters will need to pay for damage or fines, depending on the level of insurance they choose.

5. Reporting Damage or Violations

  • Immediate Notification: Renters must report any accidents or damage immediately to the rental company. This helps in processing insurance claims and ensuring the vehicle is repaired before the next rental.
  • Traffic Violations Reporting: Renters should also notify the rental company if they receive a ticket or fine during the rental period.

6. Return of the Vehicle

  • Condition of Vehicle: The vehicle should be returned in the same condition as when it was rented, subject to reasonable wear and tear.
  • Inspection at Return: Upon return, the rental agency will inspect the vehicle for any new damage or issues and check for any unpaid fines.

11. Prohibited Practices

The following practices are prohibited:

  • Subletting: Renters cannot sub-rent the vehicle to another party.
  • Unauthorized Commercial Use: Using rented vehicles for commercial purposes without proper authorization is illegal.

1. Subletting

  • Definition: Subletting refers to the practice where the renter of a vehicle rents it to a third party.
  • Why it’s prohibited: Subletting can lead to misuse of the vehicle, potentially damaging the vehicle or violating the terms of the original rental agreement.
  • Consequences: If the renter is found to have sublet the vehicle, it may result in penalties, termination of the rental agreement, and possibly legal action.

Steps to Avoid Subletting:

  • Ensure that the vehicle rental agreement explicitly states that subletting is prohibited.
  • Monitor the vehicle’s usage to make sure the renter is not passing it on to others.
  • Set clear terms in the agreement regarding the consequences of subletting.

2. Unauthorized Commercial Use

  • Definition: Unauthorized commercial use refers to using a rented vehicle for business or profit-making activities without explicit permission from the rental provider.
  • Examples of Unauthorized Commercial Use:
    • Using the vehicle for delivery services, such as transporting goods for a business.
    • Renting the vehicle for use in ridesharing (e.g., Uber, Lyft) without approval.
    • Any other commercial enterprise without the proper consent from the rental company.
  • Why it’s prohibited: Rental vehicles are typically insured and priced for personal use, not for business. Commercial use can pose higher risks and lead to increased insurance claims or wear and tear on the vehicle.
  • Consequences: Engaging in unauthorized commercial use can result in the cancellation of the rental agreement, additional charges, or legal consequences.

Steps to Avoid Unauthorized Commercial Use:

  • Make sure that the rental agreement clearly defines what constitutes commercial use.
  • Obtain written authorization from the rental company if commercial use is required.
  • Regularly check the vehicle’s usage to ensure it’s being used as intended (for personal use only unless otherwise specified).

12. Vehicle Scrappage Policy

Effective January 1, 2025, vehicles older than 15 years that fail mandatory fitness tests will be deregistered and prohibited from operating on Telangana roads. Rental operators must ensure their fleet complies with this regulation.

1. Eligibility for Scrappage

  • Vehicle Age: The policy applies to vehicles that are older than 15 years. If a vehicle has been in use for 15 years or more, it may be subject to deregistration under this policy.
  • Failure of Fitness Test: Any vehicle that fails to pass the mandatory fitness test will be deregistered, regardless of its age.

2. Mandatory Fitness Test

  • Test for Vehicles Older Than 15 Years: Vehicles that are older than 15 years must pass a fitness test to ensure they are roadworthy and comply with safety and emission standards.
  • Test Locations: The tests will be conducted at authorized testing centers across Telangana.
  • Failure to Pass: If the vehicle fails the test, it will be deregistered and prohibited from operating on public roads.

3. Deregistration and Prohibition

  • Deregistration Process: Once a vehicle fails the fitness test, it will be deregistered by the authorities, meaning it can no longer be legally operated.
  • Prohibition on Operation: A deregistered vehicle will be prohibited from being driven on Telangana roads.

4. Rental Operators’ Responsibility

  • Fleet Compliance: Rental operators must ensure that their entire fleet of vehicles complies with the Vehicle Scrappage Policy.
  • Pre-emptive Action: Rental operators with vehicles older than 15 years should plan for scrapping or replacement to avoid losing their fleet’s operational capacity.
  • Penalties: If rental operators fail to comply with the policy, they could face fines or other penalties.

5. Scrappage Process

  • Vehicle Disposal: Vehicles that fail the fitness test and are deregistered will be sent for scrapping, ensuring that they are disposed of in an environmentally responsible manner.
  • Incentives for Scrapping: The government may offer financial incentives or exemptions on the registration fee for those who opt to scrap old vehicles and purchase new ones.

6. Implementation Timeline

  • January 1, 2025: The policy came into effect. From this date, all vehicles over 15 years old that fail the fitness test will be deregistered.
  • Ongoing Enforcement: The government will continue to enforce this policy regularly, ensuring that all vehicles comply with the fitness and environmental standards.

7. Impact on the Environment

  • Reducing Pollution: The policy is aimed at reducing air pollution by ensuring older, more polluting vehicles are removed from the roads.
  • Promoting Sustainable Mobility: The policy encourages the replacement of old vehicles with newer, more fuel-efficient, and environmentally friendly models.

8. Further Guidelines and Updates

  • Government Announcements: The government may release further details and guidelines for vehicle scrapping or replacement programs, including potential subsidies and tax exemptions for vehicle owners.

13. Compliance and Enforcement

The Transport Department conducts regular inspections to ensure compliance with all regulations. Non-compliance can result in penalties, including fines and suspension of rental licenses.

For detailed information and updates, stakeholders are encouraged to consult the Telangana Transport Department’s official website.

1. Regular Inspections

  • The Transport Department conducts regular inspections of rental businesses.
  • These inspections ensure that all rental operations comply with the regulations set by the department.

2. Compliance with Regulations

  • Rental businesses must adhere to various state and local regulations, such as safety standards, documentation, and payment of necessary fees.
  • Failure to meet these regulations can lead to penalties and legal actions.

3. Penalties for Non-Compliance

  • If a rental service is found non-compliant, they may face:
    • Fines: Penalties imposed based on the severity of the violation.
    • Suspension of Rental License: If the violation is serious, the business may have its rental license temporarily or permanently revoked.

4. Ensuring Compliance

  • Documentation: All required documents, such as business licenses, insurance, and safety certifications, must be maintained up to date.
  • Vehicles Inspection: Vehicles used for rentals must be inspected to meet safety and emission standards.
  • Compliance Checks: The department may check for issues such as overcharging, illegal modifications, or unsafe practices.

5. Staying Informed

  • Stakeholders (rental business owners, operators, etc.) are encouraged to regularly consult the official website of the Telangana Transport Department for the latest regulations, updates, and any changes in the compliance framework.

6. Addressing Non-Compliance

If the issue remains unresolved after a specified period, penalties or the suspension of the license may be enforced.

If violations are identified during an inspection, the business is given a chance to rectify the issue. In some cases, warning notices may be issued.