I'm pretty sure New Jersey is one of the states with the Graduated Drivers License (GDL) program, which means 16 year olds can have one passenger (not counting their family, so this boy could have your daughter in his car plus, say, his brother and sister, but not his brother and his brother's girlfriend) and cannot drive between 11:01 pm and 5 am except for work or a religious event, and then only with a signed permission slip on company/church letterhead. Some towns make exceptions for a prom or homecoming, and the time restriction is extended to midnight on that night but there still can't be too many kids in the car and they must be headed home and have proof that they were at the prom. And seatbelts are a must.
And I think his car has to have some kind of decal on it that identifies him as a young driver with restrictions. If he's stopped by the police and is in violation, there are some pretty serious penalties. (Not sure about the decal).
So you might ask to meet him at your home, and ask him what his understanding is of his driving privileges (after you've familiarized yourself with the law, and if you can't find it online, go to your local police station or motor vehicles dept and ask). If he doesn't know, that will give you some information to make your decision on. If he's aware, then that will also tell you that he's responsible, or informed at least. And make sure your daughter is very very aware of these laws. Be nice though, don't treat him like you're questioning him in the Inquisition, just tell him you're happy to meet him, serve him some cookies or pizza, and just be friendly.
How strict you need to be depends on your daughter. A 16 year old who skips classes, fails to turn in homework, never does her chores or does them poorly, has lied to you and stolen change from your purse, is always late, is rude to Grandma and is completely unreliable - in my opinion - gets completely different treatment than a 16 year old who does well in school, is active in church or a club or an extra-curricular group or with a healthy group of friends, is helpful and reliable and trustworthy. Of course there will always be the usual and occasional and completely normal whining or accusing you of being the worst mom, or cheerleading practice went late and a homework assignment was missed, but if those are the exception and not the rule, then I think that teen has earned the privilege of being trusted in return.
But take the time to establish the ground rules. If she says she's going to the movies, she's going to the movies. She's not ditching the movie and going to a party in the next town. And picking her up from the mall at 10 pm means 10 pm, not 11:15. And grades must be kept up, and so must piano lessons or cheerleading or dance or softball or whatever she has made a commitment to. Of course, there will still be some restrictions at this age: hours, things she's not going to go to like a fraternity party or a party where the parents won't be home, or an all night drive to see the sunrise. But within reason, like school dances and movies and pizza and football games, some freedom has been earned. Teach her that accountability and trustworthiness equal privileges and respect and trust.
And then let yourself follow through. Tell her you won't be lurking outside the school or the movie theater, but neither will you be going to bed and asleep and just assuming she came in at 11 pm on a Saturday. You'll be checking that curfew. You'll be alert but relaxed. No grilling if she comes in at the specified time. Just say "hi honey, hope the movie was as good as the previews seemed! Are you hungry at all? No? Ok, good night, then!"
And as I have said before, develop a code with her that she can text to you if she is in trouble. If the 16 year old boy says that 5 of his buddies need a ride to a party in the next town, or if he acts like a jerk, or if she's feeling sick, or any one of a million potential problems, have a neutral text or word clue that she can send to you. It could be "42", meaning "call me" (4 letters in call, 2 in me) or she can call you and say "mom I forgot to take my clothes out of the dryer" and you'll know to call her and/or ask discreet yes or no questions. "Are you in an uncomfortable situation?" "Is someone drinking?" My son was told to call and tell me he forgot to give me a phone message and he'd tell his pals that I was going to "freak out". It made me the bad guy and he had a reason to call. I could either give him some guidance, or tell him to call 911, or "ground" him and come get him, having "freaked out" over his not giving me the non-existent phone message.
Hope this helps.