This is copied from GTP Online race rules:
08: Corner Rights:
A:
When approaching the turn/apex of turn, the car which "holds" the inner side of turn has entrance-advantage and other driver(s) must refrain from endangering him by his actions.
B:
You must establish substantial overlap with the car ahead before they reach the corners turn-in point to have the right to drive up their inside, or to expect them to leave inside room for you. At least the front of your car should be up to the drivers position in the ahead car. The ahead driver has the right to be fully committed to the racing line of their choice without any interference if there was no substantial overlap before he turned in.
C:
If sufficient overlap is established before the turn-in point, then the behind driver has the right to sufficient side room. The ahead driver must also leave sufficient side room for the behind driver. This means that each driver has a right to their respective "line", or side of the track, right up to the exit point. Neither driver should squeeze the other toward the inside or outside of the corner during the apex or exit.
D:
If an ahead driver has clearly made an error to warrant a passing move, a behind driver may attack their position, with due caution and care, regardless of whether there was any pre-existing overlap. However, the overtaking driver must still avoid contact. Small errors by the ahead driver may not justify a passing move. The ahead driver getting a bit out of shape at times doesnt give you an automatic right to pass. You still have to judge if their error allows for a safe pass to take place.
E:
Drivers who are using PS2/PS3 controller MUST make additional effort in driving due to the fact they can't use side-view, and their perception of the other cars is thereby limited - extreme caution while maneuvering is required. If you are using a controller, you are required to set buttons up for side views as "I didn't see you." is not an excuse if you collide with another driver when racing.