Q: Whats my liability/fault?
I own a small business that buys and resells used/unwanted goods. One of my employees sold a vehicle that was his for $500 while representing the store. I as the owner had no idea this was going on. Me or my store did not own the vehicle in any shape or form and was not there when the sale took place. Nor did I sign or approve any of this to take place. The person who purchased it never got the title to the vehicle. But picked it up and drove it away themselves. my employee claims he sold it without the title and the person was aware of that. But the person says he promised him the title and hes going to take me the business owner to court if he does not get it. Keep in mind I did not own what was sold or have any part in it besides someone tried to say my store was selling it. Also he said I will owe him in excess of $30000 for this.
A:
Worst case scenario--you pay him what the car was worth. The big issue is any liability if he drives. If it's just for the title snafu, you third party in your employee if sued. If you have overall liability insurance, then notify your carrier.
However, for starters your employee needs to get the title. If he never had it then........how good an employee is he?
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