Owning an auto dealership carries an immense risk of litigation. With several locations, hundreds of employees, and liability concerns, auto-dealer owners need to be proactive.
CoverMySix® can save you thousands of dollars and hours defending against unnecessary legal battles.
Are you at risk of being sued?
CoverMySix® (CM6) is a proactive legal and regulatory risk-assessment system that identifies and addresses the six areas most likely to cause a business legal exposure for damages, fines and attorneys’ fees. Instead of racking up billable hours to speak with a business lawyer when problems emerge, we have a solution that protects your business from the jump. It’s called CoverMySix®.
Hear from a few satisfied CM6 clients . . .
Employees present a great risk of litigation in the auto industry. Employees work late hours and are constantly in high-pressure situations that can lead to burnout. If your employment policies don’t meet state or federal guidelines, dealership owners are susceptible to compliance challenges.
Businesses protect themselves from customer lawsuits by having good customer agreements. But with thousands of vehicles sold each year, errors can happen. Errors in drafted agreements, titling processing, and warranty policies can break consumer sales practices acts and federal law, putting you at risk for litigation.
As an owner of an auto dealership, what is your level of liability if you were taken to court? CM6 helps separate your business’s corporate liability from your personal liability. CM6 ensures that owners are following corporate formalities like shareholder and operating agreements. These agreements must be correctly and accurately drafted so plaintiffs can't target your personal assets. CM6 helps you keep your dealerships assets separate from personal assets.
Competition in the auto industry is fierce. Competitors will poach your employees in a variety of key positions (sales, collection, service department, finance). But if you have confidentiality agreements, non-compete clauses, and non-solicitation clauses, you can protect your intellectual property and trade secrets getting into the wrong hands... your competitors.
Federal, state and local compliance with regulations can be cumbersome, and failures to comply can be fatally disruptive, a public relations nightmare, and costly. The government (e.g., State Attorney General, Federal Trade Commission, and others regulatory agencies) has an unlimited budget to investigate businesses, and the government’s subpoena power is so strong that, once inside, it is difficult to keep investigators out of your business.
Auto dealership owners can’t be successful without strong relationships with their vendors and suppliers. But inevitably, disputes arise. And when they do, CM6 ensures you have strong vendor contracts to minimize liability and business disruptions.
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