National car retailer ends up in trouble over business practices

Nashville, TN – One of the best reasons for a company to contact a business lawyer is to avoid future problems. This is true for small companies just getting started, as well as much larger national businesses that have problems with things like regulations and local governments. A business can start to run into serious pitfalls such as lawsuits and fines if their business model does not properly align with the government’s rules.

Yahoo News reported on some serious issues that Cavana is having with state governments due to its business model of reselling cars [1].

National car retailer gets in trouble with state government

The problems began when Carvana had some long running issues regarding registration and titling issues in Illinois. Various complaints had been filed with the Secretary of State by consumers who had problems with the company’s representations about their services.

The company’s business model has a large online presence, and they are dependent on customers being able to sell, trade in, and buy various used cars anywhere in the country. The state of Illinois had revoked Carvana’s license to do business locally for violating their rules related to proper transfer of title, temporary registrations that were issued in violation of state law, and other matters. Part of their sanctions included a mandatory process to use a third party company to properly go through the title and resale process on any vehicles that were to be sold within the state.

After the issues were settled with the government, the company stated that it will resume selling cars online or through its well known car vending machine.

Knowing relevant regulations is crucial to operating a business properly

Motor vehicles are a heavily regulated area to do business. Each state has its own laws related to things like licensing, titles, registration, and how these items are transferred during sales and moves from in and out of state. The fees associated with these transactions are also a huge source of revenue for state governments, so they have a strong interest in making sure that any company working in this area is not cutting corners to avoid payment of various fees.

For reasons such as those discussed in the article above, businesses in any industry should always get legal advice about these kinds of regulations to avoid potential lawsuits or fines, as well as damage to their reputation.

Business attorneys are available in Tennessee

The Law Office of George R. Fusner is a practice that handles business law issues in the Nashville area. Individuals and businesses who have questions can contact the firm to learn more.

USAttorneys.com is a service that helps people find lawyers in their city or state. Anyone who needs a referral to a licensed attorney can call 800-672-3103 for help.

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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