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How can I avoid litigation?

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Business disputes may be an inevitable part of owning a car franchise, but litigation does not have to be. It is, in fact, possible to go your entire career without stepping foot in a courtroom. The key is to ensure that you structure communications with your contractors, employees and other partners skillfully.

Going to court is very expensive. Not to mention, it is highly likely you will be able to make better use of the time. This is why incorporating litigation avoidance and risk shifting provisions in your contract as well as resolving disputes early are a must.

What are some risk shifting and litigation avoidance provisions I should be aware of?

Whenever you are negotiating a contract with a third party, it is wise to put in mandatory mediation or arbitration provisions. Generally, it is a good idea to start off with mandatory mediation and then have additional arbitration provisions in place if they are necessary. This keeps you out of the courtroom at first brush with conflict.

Agreeing in advance to allow third-party investigators to take a look at contention points is also a very smart move. This will allow a “cooler head” to take a look at whatever is causing the conflict; often, this will end the conflict entirely. Additionally, making sure that your release, disclaimer and waiver language are all robust is paramount.

How can I resolve disputes early?

Your ability to end conflict before it starts relies heavily on your communication management. A lot of the time, the chance to avoid litigation appears right at the beginning of troubling developments. Creating robust reporting procedures for employees as well as constant follow-up can end arguments before they end up in court.