California Auto Dealership Defense Lawyers
Last updated on July 27, 2026
From our offices in Irvine and Westlake Village, Burkhalter Kessler Clement & George LLP provides highly experienced counsel and representation to auto dealers throughout Southern California. We have obtained outstanding results for our dealer clients in dealer vs. manufacturer and dealer vs. dealer litigation. We are also recognized for our successes before the New Motor Vehicle Board (NMVB) in dealer relocations, add points and termination protests.
Our attorneys are the only ones in California to win multiple jury trials against manufacturers, awarding multimillion-dollar verdicts for our dealer clients. These include a $3.1 million jury verdict against Nissan and a $5.4 million jury verdict against AM General (Hummer).
We also act in a transactional advisory role on behalf of dealerships across the state, helping clients buy and sell dealerships and dealership real estate. The vast majority of our practice within auto dealership law and car dealer defense is composed of representing clients in the following matters:
- Add point protests
- Dealer vs. dealer litigation
- Dealership buy-sell transactions
- Dealership employment law issues
- Dealership real estate transactions
- Executive compensation programs
- Facility improvement requests
- Manufacturer and dealer disputes
- Relocation protests
- Termination protests
Learn more about our attorneys’ impeccable results in dealership jury trials and NMVB hearings, or read testimonials from a few of our satisfied auto dealer clients.
Providing Strategic Defense To Dealers Facing Consumer Claims
Burkhalter Kessler Clement & George LLP also provides strategic consumer defense in matters related to California’s “Lemon Law,” Consumers Legal Remedies Act (CLRA) claims, the “single document” rule under the Automobile Sales Finance Act (AFSA), the Truth in Lending Act (TILA) and other car dealership laws and regulations.
If you have a legal concern related to the purchase, sale or lease of a vehicle from an auto dealership in California, do not hesitate to consult our Orange County law firm. Burkhalter Kessler Clement & George LLP‘s lawyers stand ready to advocate for you.
Manufacturer Franchise Disputes In California
Running an auto dealership in California means dealing with strict rules and heavy pressure from car manufacturers. Fortunately, state law and the California New Motor Vehicle Board (NMVB) give dealers powerful tools to keep these business relationships fair and safeguard their investments.
Unfortunately, even with these protections in place, conflicts still arise when demands threaten a dealer’s profitability or control. Common manufacturer franchise disputes include:
- Forced facility upgrades: Being pressured into expensive building redesigns or brand upgrades that may not actually ensure positive results
- Unfair vehicle allocations: Receiving fewer popular vehicles because the manufacturer favors other stores or uses unfair inventory formulas
- Add-point protests: Fighting back when a manufacturer tries to open a competing dealership too close to your store’s primary market area
- Franchise terminations: Stopping wrongful attempts by a manufacturer to cancel a dealership agreement without a valid legal reason
- Warranty reimbursement disputes: Challenging manufacturers when they fail to pay full retail rates for parts and labor spent on warranty and recall repairs
When manufacturers push too far, state law offers clear steps for dealers to defend themselves. For example, manufacturers cannot withhold inventory just to force you into costly building remodeling programs. If a manufacturer tries to tie vehicle supply to mandatory facility upgrades, the dealer may challenge them directly before the NMVB.
Sales Team Contract Vulnerabilities
Poorly drafted sales contracts and finance practices invite costly legal threats. In the state, every sales commission agreement must be in writing, signed by both the employer and employee. It should clearly explain how pay and schedules work. Because of this strict rule, vague wording about sales draws or commission forfeitures frequently leads to expensive employee lawsuits.
Moreover, sales teams must carefully follow state buyer protection laws. For example, under the Single Document rule, every single agreement and payment made during a car sale must be written on one single main contract. A violation may lead to canceled vehicle sales and heavy penalties.
Dealerships can guard against these risks with comprehensive arbitration agreements. These contracts keep disputes out of court and shield your business from massive pay-and-hour lawsuits.
Serving Dealerships Across Southern California
While our firm is based in Irvine and Westlake Village, our attorneys have a long history of representing auto dealers in legal matters across the region, including:
- Los Angeles
- Orange County
- Ventura County
- Riverside County
- San Bernardino County
Frequently Asked Questions For California Auto Dealers
Below are answers to common legal questions we receive from dealership owners and operators across California.
What is the “single document rule,” and how does it affect my dealership?
The “single document rule” under the Automobile Sales Finance Act generally requires all required sales and finance terms to appear in one complete contract. Errors or inconsistent paperwork can expose dealerships to consumer claims, even when unintentional.
How can our dealership defend against a California Lemon Law claim?
Lemon Law defenses often focus on repair history, warranty coverage, consumer use and compliance with notice requirements. Early legal review can help limit exposure and resolve claims efficiently.
What are the most common legal mistakes dealers make in buy-sell transactions?
Common issues include incomplete due diligence, manufacturer approval delays, unclear liability allocation and poorly structured purchase agreements. Experienced dealership counsel helps prevent costly post-closing disputes.
How can Southern California auto dealers protect themselves from manufacturer-imposed facility upgrades or unfair vehicle allocations?
Dealers can protect themselves by using California franchise laws and filing formal protests with the NMVB. Specifically, state law makes it illegal for manufacturers to punish dealers with lower inventory allocations just because they refuse unnecessary facility upgrades. When you file a protest, the manufacturer must prove that their demands are fair and legally justified before they can touch your vehicle supply or force you to remodel.
What are the primary legal vulnerabilities in automotive sales team commission agreements under California law?
The biggest legal mistakes stem from failing to follow labor codes in the state. Pay arrangements often fail when they use vague rules for earning commissions, unwritten chargeback policies or unclear systems. In addition, if a commission plan does not clearly separate regular sales pay from required rest breaks and non-sales work time, the dealership becomes an easy target for costly class-action lawsuits.
Can auto dealerships enforce mandatory employee arbitration agreements to mitigate wage-and-hour litigation risks?
Yes, they can. Under federal law, dealerships can require employees to sign arbitration agreements that include class-action waivers. However, to stand up in court, these contracts must be written very carefully.
They need to be fair to both sides, use neutral arbitrators and preserve statutory rights. When set up correctly, arbitration agreements effectively shield dealerships from multimillion-dollar wage-and-hour lawsuits.
Staying successful requires a smart legal strategy that handles manufacturer pressure and workplace rules at the same time. By working with experienced California auto dealership attorneys, you may keep your contracts compliant and reduce financial risk.
Contact Burkhalter Kessler Clement & George LLP
To arrange a consultation about any facet of auto dealership law, call 888-714-1738 or contact Burkhalter Kessler Clement & George LLP‘s Irvine or Westlake Village offices online. We take pride in our level of service and commitment to personalized representation.