Dealership Traditional Services

• Initial Planning and Structuring the Transaction

  • • Strategic Transaction Planning: Whether you are acquiring a single dealership or selling multiple locations, we help you develop a transaction structure that aligns with your goals.

  • • Choosing the Right Transaction Type: We advise on the benefits and implications of structuring the deal as an asset purchase or a stock sale, considering tax consequences, liability exposure, and regulatory implications in conjunction with your trusted accountant or Certified Public Accountant.

  • • Seller Readiness Assessments: For sellers, we conduct pre-sale audits to identify potential red flags, such as outdated franchise agreements or compliance gaps, that could affect the deal.

• Due Diligence Support for Buyers and Sellers

  Buyer Due Diligence: We assist buyers in evaluating the dealership’s legal, financial, and operational health by reviewing:

  • • Franchise agreements and compliance history.

  • • Real estate ownership or lease terms for the dealership’s property.

  • • Inventory records, service contracts, and warranties.

  • • Employee contracts and workforce considerations.

  • • Seller Due Diligence: We help sellers prepare comprehensive disclosure documents to instill confidence in prospective buyers and avoid post-sale disputes.

• Drafting and Negotiating Buy-Sell Agreements

  The buy-sell agreement is the legal backbone of your transaction. We ensure these agreements are customized to meet your needs, covering key aspects such as:

  • • Assets Included in the Sale: We clarify whether inventory, real estate, service contracts, intellectual property (e.g., brand name and goodwill), or other assets are included.

  • • Liabilities Excluded from the Sale: We work to limit seller liability post-sale and prevent buyers from inheriting unexpected debts or legal claims.

  • • Pricing Adjustments: We address pricing adjustments for inventory fluctuations, pending warranty claims, or unforeseen costs.

• Manufacturer and Franchise Agreement Compliance

  The manufacturer relationship is one of the most critical elements of a dealership sale. Our services include:

  • • Assisting buyers with manufacturer approval applications.

  • • Reviewing and renegotiating franchise agreements to ensure the buyer is fully compliant with OEM (Original Equipment Manufacturer) standards.

  • • Ensuring sellers fulfill their obligations to manufacturers during the ownership transition.

• Regulatory and Licensing Compliance

  Auto dealerships are subject to a variety of state and federal regulations. We ensure compliance with laws governing:

  • Dealer licenses and permits.
  • FTC and state advertising regulations.
  • Environmental laws affecting the dealership’s property and operations.
  • Vehicle inventory and warranty records.

• Real Estate Transactions

  Whether the dealership property is being purchased, leased, or included in the sale, we provide guidance on real estate matters, including:

  • Drafting and negotiating lease assignments or purchase agreements.
  • Conducting title searches to resolve zoning or ownership disputes.
  • Ensuring environmental compliance for the property’s continued use as a dealership.

• Employee Transition and Retention

  Dealership transactions often involve significant employee considerations, such as:

  • Drafting new employment contracts, including non-compete and non-solicit agreements.
  • Advising on the transfer of payroll systems, benefits, and insurance policies.
  • Navigating labor law compliance during workforce transitions, including layoffs or hiring freezes.

• Closing and Post Closing Matters

  • Closing Document Preparation: We handle all aspects of closing, including the transfer of titles, licenses, and franchise approvals.
  • Post-Closing Dispute Resolution: In the event of post-closing disputes, such as breaches of warranties or representations, we provide legal representation to protect your interests.

• Insurance Dispute Resolution

  Dealing with insurance companies can often feel like trying to negotiate with a brick wall—rigid, unyielding, and indifferent to your rightful claims.

• Insurance Dispute Resolution for Car Dealerships

  Insurance disputes can disrupt your dealership’s operations and profitability. At Dealership Law Solutions, we specialize in resolving insurance disputes for car dealerships. With years of experience navigating complex insurance claims and policies, we provide proactive, strategic legal representation to protect your dealership’s financial interests. Whether you’re facing a denied claim, bad faith insurance practices, or disagreements over coverage, our team works tirelessly to resolve disputes efficiently and effectively.

• Claim Denial Challenges

  Insurance companies may deny claims for various reasons, including misinterpretation of policy language, alleged procedural violations, or disputes over liability. We help dealerships:

  • • Evaluate the insurer’s reasons for denial.

  • • Gather and present evidence to support the validity of the claim.

  • • Appeal denied claims through negotiation or litigation.

• Bad Faith Insurance Practices

  When an insurer fails to honor its obligations, we hold them accountable for bad faith practices, such as:

  • • Unreasonable Claim Denials: Denying valid claims without proper investigation.

  • • Delayed Payments: Failing to process and pay claims within a reasonable timeframe.

  • • Misrepresentation of Policy Terms: Providing misleading information about coverage limits or exclusions.

• Coverage Disputes

  Disputes often arise over the scope of coverage provided by a policy. We help dealerships:

  • • Interpret complex policy language to understand coverage limits and exclusions.

  • • Negotiate with insurers to resolve disputes over what is covered.

  • • Advocate for expanded coverage interpretations in cases of ambiguous policy terms.

• Dealer Insurance Programs and Policy Audits

  We assist dealerships in proactively avoiding disputes by:

  • • Reviewing insurance policies to ensure adequate coverage for business risks, including liability, property damage, and cyber threats.

  • • Advising on dealership-specific insurance needs, such as garage liability policies, workers’ compensation, and floor plan insurance.

  • • Identifying potential gaps in coverage before claims arise.

• Specialized Services for Dealership Insurance Claims

  • • Garage Liability Claims: Addressing claims related to vehicle accidents, repairs, or other liability issues occurring on dealership premises.

  • • Property Damage Claims: Resolving disputes over losses due to natural disasters, vandalism, or theft.

  • • Employee-Related Claims: Navigating disputes related to workers’ compensation, employment practices liability insurance (EPLI), or other employee claims.

• Litigation and Alternative Dispute Resolution

  When disputes cannot be resolved through negotiation, we represent dealerships in:

  • • Arbitration or Mediation: Pursuing cost-effective alternatives to litigation.

  • • Litigation: Filing lawsuits against insurers for breach of contract or bad faith practices.

• Catastrophic Loss and Business Interruption Claims

  Natural disasters, fires, or other catastrophic events can bring dealership operations to a halt. We assist with:

  • • Filing and negotiating business interruption insurance claims.

  • • Recovering losses related to revenue disruption, repairs, and inventory damage.

• Compliance Review

  Staying compliant is not just about avoiding penalties – it’s about safeguarding your business’ integrity and future.

• Comprehensive Compliance Review Services for Car Dealerships

  Navigating the complex regulatory landscape of the automotive industry is essential for the success and longevity of your dealership. At Dealership Law Solutions, we specialize in providing compliance review services tailored specifically to car dealerships. Our proactive approach helps dealerships ensure their operations align with federal, state, and local laws, minimizing the risk of costly penalties, lawsuits, and reputational damage.

• General Litigation Services

  A lawyer is crucial in litigation for expertly navigating complex legal processes, ensuring robust defense or prosecution of claims, and safeguarding your interests against potential risks and uncertainties.

• Comprehensive General Litigation Services for Car Dealerships

  Operating a car dealership comes with unique legal challenges that can escalate into disputes, requiring skilled litigation to resolve. At Dealership Law Solutions, we specialize in representing car dealerships in a wide range of legal conflicts. From defending against lawsuits to prosecuting civil claims, our experienced team of attorneys provides tailored, aggressive representation to protect your business, enforce your rights, and achieve favorable outcomes. We handle every stage of the litigation process with precision, ensuring that your dealership’s interests are safeguarded at every step.

• OEM Dispute Services

  • Enforcing Your Franchisee Rights
  • OEM Dispute Resolution Services for Car Dealerships

  Disputes with manufacturers (OEMs) can threaten the stability and profitability of your dealership. At Dealership Law Solutions, we specialize in resolving conflicts between car dealerships and their OEM partners. Whether you are dealing with unreasonable performance demands, franchise agreement violations, or disputes over allocation and territory, our legal team provides strategic representation to protect your rights and secure favorable outcomes. With years of experience in dealership law, we understand the complexities of franchise relationships and the power dynamics between manufacturers and dealers. We work tirelessly to level the playing field and ensure your dealership’s success.