Lawyers Cedar Rapids IA

As a body shop owner, you have a lot to worry and think about. If you're successful, though, you probably make the time to check the quality of the paint work leaving your shop - even though you employ painters.

By Paul Rice
4/1/1997

Why, then, do many shop owners feel comfortable ignoring the "legal stuff" simply because they employ a lawyer?

As a shop owner, you need to at least have a general knowledge of the laws that affect your business. For the sake of brevity, we've chosen to highlight eight topics - out of the many - that are important legal issues for the '90s and beyond.

Salvaged Vehicles

Body shops frequently are presented with the opportunity to obtain "totaled" vehicles at minimal cost. A potential exists to turn a profit on these vehicles by rebuilding them during slow times, often with used or rebuilt parts. Body shop owners should be aware, though, that many states have some form of Salvage Title Act, which requires the issuing of a new title that states the vehicle is salvaged.

These vehicles may be sold at an auction, traded in or sold to dealers, or advertised in the newspaper. An unwitting purchaser, particularly one who suffers bodily injuries due to safety defects, may turn around and sue the body shop, the prior owner and the insurance company for failing to comply with the state's Salvage Title Act - and any profit made on the vehicle will be quickly eaten up in legal fees. Further, your general-liability insurance ...