Steering and Right of Way rules out on the water

Vessels in sight of one another

You can see the other sailor(s) (Not looking around is not an excuse)

(a) when two sailing vessels are approaching one another, so as to involve risk of collision, one of them shall keep out of the way of the other as follows:

(i) when each of them has the wind on a different side, the vessel which has the wind on the port side shall keep out of the way of the other;
Layman's Terms: Right hand forward (nearest the mast) means you are on a starboard tack and have "right" of way

(ii) When both have the wind on the same side, the vessel which is to windward shall keep out of the way of the vessel which is to leeward;
Layman's Terms: If you are upwind, you have more options to get out of the way. You cannot come down on someone to leeward(downwind).

(iii) if the vessel with the wind on the port side sees a vessel to windward and cannot determine with certainty whether the other vessel has the wind on the port or the starboard side, she shall keep out of the way of the other.
Layman's Terms: If you are not sure, keep out of the way anyway. Port always give way to starboard. Remember point (i) above.

(b) For the purposes of this Rule the windward side shall be deemed to be the side opposite that on which the mainsail is carried or, in the case of a square rigged vessel, the side opposite to that on which the largest fore-and-aft sail is carried.
Layman's Terms: When you are sailing along normally, you are facing leeward, your back is to windward.

Overtaking

Blasting past someone

(a) Any vessel overtaking any other shall keep out of the way of the vessel being overtaken.

(b) A vessel shall be deemed to be overtaking when coming up with a another vessel from a direction more than 22.5 degrees abaft her beam, that is, in such a position with reference to the vessel she is overtaking, that at night she would be able to see only the stern light of that vessel but neither of her sidelights.

(c) When a vessel is in any doubt as to whether she is overtaking another, she shall assume that this is the case and act accordingly.

(d) Any subsequent alteration of the bearing between the two vessels shall not make the overtaking vessel a crossing vessel within the meaning of these Rules or relieve her of the duty of keeping clear of the overtaken vessel until she is finally past and clear.
Layman's Terms: If you are blasting past someone, you have to give way to them ALWAYS.

Responsibilities Between Vessels

Who has to give way

(a) A power driven vessel underway shall keep out of the way of:

(i) a vessel not under command;
(ii) a vessel restricted in her ability to maneuver;
(iii) a vessel engaged in fishing;
(iv) a sailing vessel;
Layman's Terms: Motor gives way to sail, so jetski's give way to sailors, but remember, it will not do you or your season any good if you are run over by a Rotto ferry!

(b) A sailing vessel under way shall keep out of the way of:

(i) a vessel not under command;
(ii) a vessel restricted in her ability to maneuver;
(iii) a vessel engaged in fishing;
Layman's Terms: Don't run into moored boats, large ships in channels(cause they can't get out of the way or stop in time) and anchored boats full of fishermen.

(c) A vessel engaged in fishing when underway shall, so far as possible, keep out of the way of:

(i) a vessel not under command;
(ii) a vessel restricted in her ability to maneuver.
Layman's Terms: A bit of a tricky one Fishing vessels give way to sail as it is motorised(Usually, but if it's a sail boat, then the port starboard thing kicks in), but if a fishing vessel is trawling, netting, or pulling/dropping pots, stay out of the way, or you could become part of the catch.

So the Basics in review