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Detroit-area industries need an effective legal strategy

Hubbard Snitchler & Parzianello

The greater Detroit area is still home to many important businesses of all sizes that are connected to the manufacturing and sale of automobiles.

Southeast Michigan also hosts a number of other manufacturing businesses as well. They all play an important part in the economy and, of course, in the lives of the families that work for them.

As is the case with other businesses, those manufacturing and automotive industries are going to have important legal needs and face legal problems from time to time. Many of these issues are unique to the industry.

It is important that businesses anticipate and get proper help with these needs. Not handling them properly can lead to financial losses and, in the worst cases, serious damage to one’s business. By contrast, an effective legal strategy can help a business grow and flourish.

Contract negotiation is critical for the ongoing operation of manufacturers

From time to time, automotive and manufacturing businesses will want to negotiate and prepare a number of different contacts, many of which will involve several details and legal complexities:

  • They may require an employment contract for one of their executives, salespeople or highly compensated or specialized employees. These agreements will usually include detailed terms of employment, such as how an employee earns a commission or a bonus. They also may include noncompetition and nondisclosure terms to prevent a former employee from unfairly harming the business.
  • They may require a contract involving franchising or the buying or selling of another business.
  • They may wish to enter into a joint venture or other business alliance as part of their growth plans.
  • Most manufacturers have to deal with other businesses through supply contracts to make sure they have the parts they need to keep operating. On the other hand, manufacturers also may want to sell their products through an outside distributor or marketing representative, and this arrangement will also require an agreement.

When things go wrong, a business may need to resort to litigation

Despite everyone’s best efforts, sometimes legal disputes arise over these types of contracts and other matters. In these situations, a Michigan business may have to resort to litigation or some other sort of dispute resolution, like arbitration for example. They will want to do so in a way that minimizes both cost and risk to their business.

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