If you run an auto dealership, you likely have to handle a number of problems from time to time, whether you run into disagreements with staff members or face challenges which involve certain customers. We understand how challenging this can be for auto dealerships in Irvine and all over the state of California. We also know that some of these disputes can lead to litigation and that they are a myriad of reasons why auto dealers find themselves in the courtroom. Unfortunately, litigation can have an incredibly damaging impact on a dealership, even in instances when the auto dealer is falsely accused of wrongdoing.

First of all, litigation can shatter an auto dealership’s reputation, prompting potential customers to look elsewhere. This can have a damaging impact on an auto dealer and the future of their business, especially in a challenging economic climate. In some instances, the damage that an auto dealer sustains as a result of being sued is so severe that they have to shut down their business completely. After all, the financial penalties of litigation can be very serious as well.

If you are being taken to court for any reason, it is crucial to be fully prepared for what could lie ahead. You should have a good understanding of legal options that may be open to you and figure out the most practical way to handle the lawsuit. We discuss some other legal matters that may be of interest to auto dealers over on our auto dealership law page.