GM trying to strong-arm Florida dealers, McCollum says - Triangle Business Journal:

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The objection was file with the ’s Southern District of New York, where General Motors (OTC.PK: GMGMQ) filed for Chaptetr 11 bankruptcy protection earlier this Inthe filing, McCollum said that Generak Motors has “misused [its] bankruptcy-enhanced bargaininv power and forced automotive dealera to waive the very state laws that were designecd to protect them from such overreachint conduct.” The problem stems from GM asking dealers to agree to waivee several protections under Floridaz law before they can be consideredx a dealer through the new General Motors McCollum said.
GM also wants disputew over the agreements to play out in New York despite laws that give Florida jurisdictioj insuch matters. McCollum is asking the court to “affirkm that the relationship between New GM and its Floridaa dealers will be governed byFlorida law” and orderd any new agreement that does not follow Florids law to be “invalid and unenforceable.” “In the event the courtr approves the sale motion, it shoulx clarify that such approval does not validat e the attempt to evade Florida law by amending the dealerf franchise agreements,” McCollum said.
The new agreements create an ultimatu along the lineof “take it or leave it,” McCollunm said, meaning dealers either have to lose the protectiones of Florida law or lose their business. The New GM couldx have some problems dointg business if such stipulations in agreementes with dealers would McCollum said. The new company wouls have to apply for a new license to operate in and it could have that application denied if state officials feel the company is working to circumvenrstate law.