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Assuring DMS-Generated Contracts Comply with Law: Who Bears the Risk?
Day Pitney Corporate Partner Laurence Smith recently authored an article in New Jersey Auto Retailer titled “Assuring DMS-Generated Contracts Comply with Law: Who Bears the Risk?” In the piece, he notes that auto dealers rely on dealer management system (DMS) software to produce legally compliant Buyer’s Orders but often cannot revise these forms. Smith highlights the legal and financial exposure dealers face when such contracts fail to comply with state laws and outlines steps to mitigate these risks, including obtaining vendor assurances, negotiating stronger warranties and damage caps, and confirming enforceable arbitration and class action waiver provisions.