Well is seems pretty clear that the cyclist should take more of the lane. As far as San Rensho's car, there are some choices based on speed. First I would stop if this was a narrow, urban 25 mph street and possibly move to the left a bit. Otherwise business as usual. Since I live on a narrow street, with parking on both sides and no middle stripe this sends the slow down signal to the oncoming car, since if there is contact, it will be the driver of the moving vehicle who is at fault.