Legal Question in Product Liability in Georgia

My husband and I own a used 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.However, we have reason to believe the lady switch the nuts out herself. 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 because she didn't want her insurance to increase anyways , and would like my husband to pay for the damages or she would take it to small claims court. We do understand in the state of Georgia you are not required to have insurance on a Used Tire Shop, and when a consumer purchases a used tire they assume all risk of direct or indirect damages to their vehicle . As a used business we provide no cash refund, store credit only with a recipit upon request. We are not a business to try to get over on people . However, we also would prefer not to be getting over on either .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 .And we have reason to believe the lady and her husband (who happened to be driving the vehicle and which she mentions is not on her insurance policy , not that it matters ). How can we as a business protect ourselves!?

Asked on 8/08/13, 6:39 pm

1 Answer from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

This is the second time you asked. The answer has no changed.

NO tire shop should operate without massive insurance. That's nuts! If you forget to tighten one lug nut and a persoin dies, you will lose your business, your home, and every dollar you make for the rest of your life.

And your statement that customers assume all risks when they buy a used tire is ludicrous (and wrong). Even if you disclaim warranties, you can be sued for negligence.

Since you seem determined to operate a business in such an inappropriate way, please close. It may save all of your assets from a future suit.

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Answered on 8/08/13, 7:00 pm

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