As a car dealership in California, you must be aware of the potential lawsuit risks that can arise with the increasing regulations, false customer claims, and changing market trends. Here are the top 5 DOs and DON'Ts for lawsuit prevention in 2023:

DON’T

1. Don't ignore updates to existing laws or changes to regulations. It’s essential to stay current with the latest developments in your industry and make sure you are in compliance with all applicable laws.

2. Don't misrepresent vehicles on your lot or advertise deceptively when it comes to prices, availability of financing options, or the condition and prior history of your vehicles. Inaccurate or misleading advertising can lead to expensive lawsuits, especially if they violate consumer protection laws.

3. Don't discriminate based on gender, race, or other protected classes when selling vehicles or when hiring and retaining employees.

4. Don’t neglect to provide adequate employee training in areas such as safety, sales, and customer service. Failure to do so can leave you vulnerable to lawsuit claims if an employee makes a mistake or behaves inappropriately.

5. Don’t ignore signs of potential issues such as defective vehicles or upset customers. Ignoring these warning signs could also lead to expensive lawsuit settlements.

DO

1. Do keep accurate records and ensure that all documents are properly disclosed and filed in order to protect yourself from future lawsuit claims. Using disclosure and compliance software is a huge asset to your dealership.

2. Do obtain all necessary licenses, permits, and certifications as required by law.

3. Do provide your staff with proper training in customer service, sales techniques, and any other areas relevant to the business such as consumer protection laws and regulations. Make sure to have a process in place to handle and resolve customer complaints. You may want to hire an experienced lawyer for this part.

4. Do regularly inspect vehicles on your lot for potential issues or defects that could lead to lawsuit claims from consumers down the line. Also, run a CARFAX and Autocheck on your vehicles and disclose important information to your customers.

5. Do take advantage of legal resources available to car dealerships in order to stay informed about potential lawsuit risks and how to protect your business from them.