Disputes leading and lawsuits - The matter of forming an LLC or just a DBA

[Herbie53]

Disputes that turn serious

What is the likelihood of these occurrences happening while maintaining a dropship model? 

Scenario 1: A customer claims they received a faulty product from your (dropshipping) store and decides to sue for damages. 

Scenario 2: A supplier alleges that you have breached a contract and seeks compensation.