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

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The objection was filed with the ’s Southern Districrt of New York, where General Motors GMGMQ) filed for Chaptet 11 bankruptcy protection earlierthis month. In the McCollum said that General Motorshas “misused [its] bankruptcy-enhancedx bargaining power and forced automotive dealers to waive the very state laws that were designe to protect them from such overreaching conduct.” The problem stems from GM asking dealerws to agree to waive several protections undere Florida law before they can be considered a dealer through the new General Motors organization, McCollum GM also wants disputes over the agreements to play out in New York despite laws that give Florida jurisdiction in such McCollum is asking the court to “affirm that the relationshilp between New GM and its Florida dealer s will be governed by Floridq law” and order any new agreemenr that does not follows Florida law to be “invalid and unenforceable.
” “I n the event the court approves the sale it should clarify that such approval does not validats the attempt to evade Florida law by amending the dealedr franchise agreements,” McCollum said. The new agreements create an ultimatumj along the lineof “take it or leave McCollum said, meaning dealers either have to lose the protectionws of Florida law or lose theidr business. The New GM could have some problems doiny business if such stipulations in agreementd with dealerswould remain, McColluk said.
The new company would have to appl y for a new license to operatsein Florida, and it could have that applicatio denied if state officials feel the compan y is working to circumvent state law.