“If the transaction between the store and distributor is done correctly”
Its most probebly done by a delivery boy who dosent know by wich side to open an Shulchan Aruch.
The terms of “sale” or “rental” are not determined by the delivery boy, rather the store owner/authorized rep. and distributor/authorized rep.
So if after I rent the CD I lose or break it, I am liable to replace it for the owner (Aderet)?
They specifically exempt you from damages.
Does the rental allow me to loan my CD to my friend to play on his CD player (when I am away and don’t need it)? Can I use the CD in my friends car when driving it (or being given a ride), or on his CD player when I am at his house? Can my father, brother, or son take the CD from the living room shelf and play it (since I always let them borrow my stuff without asking)?
Yes
If so, if my relative/friend — on his own initiative and without my knowledge or permission — makes a copy, he seemingly violated nothing as he has no contractual relationship or agreement with the producer.
As far as the rental agreement, if you had no idea that they would copy it, you’re probably right. The assumption of this discussion was, though, that it’s assur, or at least a big lack of mentchlichkeit, to get a copy of a recording which you didn’t pay for (assuming it’s still being offered for sale).