Styling & Performance - June 2008 - (Page 25)

“The threat is very real, and under the right circumstances can wipe out your entire business, directly or indirectly,” Hansen says. “Your real risk depends on your position in the chain of distribution, your market share, years in business, type of product, product quality and usage factors, the damages or injuries involved, installation complexity, who the ‘deep pockets’ are, and a host of other factors.” And in a situation such as installing a suspension system into a race car, identifying potential legal tangles beforehand could be the difference between continued business and bankruptcy. Given this tangle of issues, how can the average retail-installer of aftermarket suspension products reduce overall risk? Fortunately, say the experts, there are several basic steps you can take. MIND YOUR BUSINESS Hansen advises starting by properly incorporating your business or setting up a limited-liability corporation and then implementing policies and procedures to minimize exposure, including a strong documentation system for all aspects of your shop. Paperwork should include installation checklists, manufacturer warranty and consumer recall information, and an appropriate liability disclaimer or waiver. “There’s basically an assumed risk in going off-road,” says Mike Livingston, division manager for the truck department of KarTek Off Road in Corona, California. “And there are many companies that print that on the back of their receipts or have their customers sign a waiver.” Both Livingston and Hansen encourage small installers to imitate examples of waivers used by large, successful automotive businesses — but don’t expect too much from them. A waiver is of little use in “failure to warn” or design and manufacturing defect cases, and in most states, a good attorney can ﬁnd a way around these documents. Ultimately, reviewing your operations the aftermarket industry, but we all suffer the blame.” —Loren Snyder, ProComp Suspension with a competent attorney before trouble hits may be the wisest strategy, despite the expense. Considering a claim can triple insurance premiums or destroy a business, “you need to put those costs in perspective,” Hansen says. BELOW: Employees who are involved in ﬁ nal product quality issues take ownership of the project, increasing their contribution to the department. “Unfortunately [lawsuits] are frequent. Some are probably no fault of June/July 2008 I stylingperformance.com 25 http://stylingperformance.com

Table of Contents Feed for the Digital Edition of Styling & Performance - June 2008

Styling & Performance - June 2008 Contents Soapbox Buzz Making Money with 1967-72 Chevrolet/GMC Trucks, Part II Red, White, Blue... & Green Limiting Installation Liability The House That Jack Built MAP vs. MVP Pricing Supply Line Distributor Directory

Styling & Performance - June 2008

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