Georgia  |  Product Liability

Legal Question

Asked on: 8/08/13, 4:04 pm

My husband and I own a tire shop , a young lady purchased a tire from our Used Tire Shop ,and stated that while on the road the nuts fell off and caused damage to the front end bender.My husband replaced the tire , and the lady asked for half of the deductible to file a claim on her insurance . My husband denied paying the lady half , and she stated she would then get the damage appraised, and would like my husband to pay or she would take it to small claims court. My question is what are our legal obligations in this scenario, and what are her odds of winning the case !? She has no receipt or no police report . How can we as a business protect ourselves!?

1 Answer

Answered on: 8/08/13, 5:45 pm by Glen Ashman

Frankly, close your business if you are operating this way. You should not be running a tire shop without at least $10 million or more in liability insurance. If you can't afford that, close. As soon as the claim came in, you should have called that insurer, which would have paid or defended the claim. The fact you are dickering with the customer tells me you need to close for a day, sit down with a lawyer, a CPA and an insurance agent and properly protect your business. One mistake can otherwise cost you and your husband your business and everything you own.

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