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Protect Your Dealership by Being Aware! Warranty Issues and Breach of Contract Update

August 03, 2023

Running a successful car dealership requires meticulous attention to detail, especially when it comes to contracts and warranties. Warranty issues and breach of contract are among the most common reasons consumers file lawsuits against car dealerships. To safeguard your dealership's reputation and financial stability, it's crucial to be certain your contracts and warranties align with local and federal laws, while reflecting your internal business practices. If you find yourself unsure about the legal aspects of warranties and contracts, seeking expert legal advice is essential. At Kolar and Associates, our experienced law firm for car dealerships specializes in automotive litigation and can provide the expertise you need to navigate these complex legal matters.

Understanding Warranty Issues

Warranties play a significant role in consumer protection and satisfaction. However, issues may arise when dealerships fail to meet their warranty obligations or engage in deceptive practices. To prevent warranty-related lawsuits, it's important to:

  1. 1. Comply with Local and Federal Laws – Warranty laws can vary at the state and federal levels. It's crucial to understand and comply with the specific regulations governing warranties in your jurisdiction. Failure to comply can result in legal consequences, including financial penalties and damage to your dealership's reputation.
  2. 2. Review and Revise Your Contracts – All of your contracts should clearly outline the terms and conditions of any warranties offered to customers. Of course, it is essential to ensure that these terms are fair, accurate, and in compliance with applicable laws. Regularly reviewing and updating your contracts can help you identify and rectify any potential issues before they escalate.
  3. 3. Provide Accurate and Transparent Information – Transparency is key when it comes to warranties. Ensure that your sales team is well-informed about the warranties offered, and that they are equipped to provide accurate information to customers. Avoid misrepresenting warranty coverage, exclusions, or limitations, as it can lead to legal disputes and erode consumer trust.

Breach of Contract and Consumer Lawsuits – Breach of contract occurs when one party fails to fulfill its obligations as outlined in a legally binding agreement. In the context of a car dealership, breach of contract claims can arise from issues such as:

  1. 1. Failure to Provide Agreed-Upon Services – Whether it's delayed delivery, incomplete repairs, or failure to honor service contracts, not meeting your obligations can result in breach of contract claims. It is crucial to have clear procedures and protocols in place to ensure consistent and satisfactory service delivery.
  2. 2. Misrepresentation or Fraudulent Practices – Providing false or misleading information about a vehicle's condition, history, or features can lead to breach of contract claims. Accurate representation is essential in building trust with customers and avoiding legal disputes.

Seeking Expert Legal Advice – Navigating warranty issues and breach of contract claims can be complex and time-consuming. To protect your dealership's interests and ensure compliance with legal requirements, it's important to seek expert legal advice from an auto dealership law firm. At Kolar and Associates, our experienced Orange County auto dealership attorneys specialize in automotive litigation, and they have over 20 years of experience in handling these matters. We can provide the guidance and representation you need to navigate warranty issues, resolve breach of contract disputes, and protect your dealership's reputation.

As you know, warranty issues and breach of contract claims can pose significant risks to your car dealership's reputation and financial well-being. By understanding and complying with local and federal laws, reviewing and revising your contracts regularly, and providing accurate and transparent information, you can minimize the likelihood of legal disputes. In situations where you require expert legal guidance, the experienced law firm for car dealerships attorneys at Kolar and Associates is here to help. With our specialized knowledge in automotive litigation, we can assist you in navigating these complex legal matters, help protect your dealership from litigation, and ensure compliance with all relevant laws and regulations. Contact us today to learn more about how our auto dealership law firm expertise can benefit your dealership's legal needs. Contact us at or dial (714) 544-0041 to learn more.

Protect Your Dealership by Being Aware! Warranty Issues and Breach of Contract Update

Contact us to see how Kolar & Associates can advocate for you.