Liability from car (brakes) product

[yellowspeedrace]

What is the name of your state? CO

I have made a brake kit for my car and I know there's a market to make kits for other cars and sell kits like mine to people with cars like mine. I would like to start selling these kits but am worried about personal liability if anything were to happen to someone that has my product installed on their car.

What do I need to do for a business? My friend told me to start a business and incorporate it so that I (and my assests) are seperated from the business. Could I have a contract written and signed by each customer that would not hold me responsible for any mishaps? Also, not legal stuff but maybe someone has some advice anyway, would I have to get some kind of insurance?

Thanx in advance
Brandon

 

[yellowspeedrace]

I forgot to add that I'm sure I would be shipping my products to other states. Whether or not that makes a difference, I don't know.

 

[HomeGuru]

What is the name of your state? CO

I have made a brake kit for my car and I know there's a market to make kits for other cars and sell kits like mine to people with cars like mine. I would like to start selling these kits but am worried about personal liability if anything were to happen to someone that has my product installed on their car.

What do I need to do for a business? My friend told me to start a business and incorporate it so that I (and my assests) are seperated from the business. Could I have a contract written and signed by each customer that would not hold me responsible for any mishaps? Also, not legal stuff but maybe someone has some advice anyway, would I have to get some kind of insurance?

Thanx in advance
Brandon

**A: and what would this brake kit actually do? I have a car with brakes, why would I need to buy your kit?

 

[You Are Guilty]

Good lord. OK, and I say this as counsel for a company that makes suspension pieces, which isn't nearly as importantly to work properly as brakes are... My advice?


DO NOT SELL YOUR BRAKE "KITS", DO NOT GIVE THEM AWAY, TRY NOT TO EVEN SAY THE WORD "BRAKE".

Clear?

I'm going to go out on a limb and say you don't have any advanced engineering degrees, right? The first time your "kit" fails to work and someone dies as a result, do you care to guess what your liability will be? Mind you, the failure need not necessarily be your fault - maybe someone installed it wrong. It's still your neck. And guess what else? You can still be personally liable even if you incorporate. How'd you like every paycheck and tax refund garnished for the rest of your life?

But since I know you still want to ignore my advice, how much testing on your "kit" have you done? What research have you conducted on your suppliers' products? What studies have you conducted with your kit on different cars? What research have you done for the environmental impact on your "kit"? Longevity issues, wear issues, improper installation issues, you name it, it's an issue.

And since I've been through this enough to know you're going to ignore every word I've typed, at least hire a lawyer before you do anything.

 

[yellowspeedrace]

Good lord. OK, and I say this as counsel for a company that makes suspension pieces, which isn't nearly as importantly to work properly as brakes are...

Can you tell me more? I have made my own adjustable strut/coil overs too

My advice?


DO NOT SELL YOUR BRAKE "KITS", DO NOT GIVE THEM AWAY, TRY NOT TO EVEN SAY THE WORD "BRAKE".

Clear?

I'm going to go out on a limb and say you don't have any advanced engineering degrees, right?

I'm earning my mechanical engineering degree as we speak and hoping that this extra money would help pay for it.

The first time your "kit" fails to work and someone dies as a result, do you care to guess what your liability will be? Mind you, the failure need not necessarily be your fault - maybe someone installed it wrong. It's still your neck. And guess what else? You can still be personally liable even if you incorporate. How'd you like every paycheck and tax refund garnished for the rest of your life?

Well that's why I asked, just wanted an idea before I spent money on a lawer here locally. I suppose if there's nothing I can do to not be personally responsible then I will steer clear of this idea.

But since I know you still want to ignore my advice, how much testing on your "kit" have you done? What research have you conducted on your suppliers' products? What studies have you conducted with your kit on different cars? What research have you done for the environmental impact on your "kit"? Longevity issues, wear issues, improper installation issues, you name it, it's an issue.

Don't jump to such conclusions, if I was just going to ignore everything I read then it would be a waste of both our times to be here to begin with. Sure, what you write is not what I want to see but lawsuits are more of what I don't want to see. As far as testing, I have tested everything at the track, the kit is on my car and functions fine. When looking at what other companies charge for the same thing, I figured I could get rich quick
I haven't done anything with different cars yet, but piecing together the parts for most cars isn't a big deal.

And since I've been through this enough to know you're going to ignore every word I've typed, at least hire a lawyer before you do anything.

See above.

Thanx for the input!

 

[yellowspeedrace]

**A: and what would this brake kit actually do? I have a car with brakes, why would I need to buy your kit?

Some people like to engage in racing activities with their cars. After a few minutes of hard braking, your brakes would no longer function very well.

EDIT: Here's an example of a brake kit made for Audis
http://www.billzcat1.com/tailgaterbrakes.html
I can make the same thing with the same components for about $600. I suppose the extra $950 they're charging goes towards paying for lawyers

 

[You Are Guilty]

I'm glad you're paying attention - most people who come hear and don't get the answer the hope for tend to ignore the advice.

To clarify the earlier statement about corporations - generally, it is true you'd be personally insulated by incorporating. But there are ways to "pierce the corporate veil" which means that you are on the hook, and they almost always get applied to sole shareholders. I don't know if this site has a discussion on it, but a quick google search turned up this one to give you a rough idea.

Anyway, you'll hear all sorts of advice on the subject, from "offroad use only" stickers to "waiver of liability forms". Most, if not all, is crap. About the only thing that could protect you is a huge insurance policy.

A lot does depend on what you're planning on making, so speaking with a local attorney is your best bet. There's a world of difference between bigger rotors and an entire brake system from pads to master cylinder. There are potential ways to accomplish your goal, but I am hesitant to even mention them as I don't want any liability for what you do Find a low-cost initial consultation attorney and I guarantee you will not regret it when the first guy careens into an oil tanker causing it to explode, killing everyone on the nearby schoolbus and in the church it was parked next to.