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

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The objection was filed with the ’es Southern District of New York, where General Motors GMGMQ) filed for Chapter 11 bankruptcy protection earliertthis month. In the filing, McCollum said that Genera l Motorshas “misused [its] bankruptcy-enhancede bargaining power and forced automotive dealers to waive the very state laws that were designex to protect them from such overreaching The problem stems from GM asking dealers to agree to waive several protections under Florida law befores they can be considered a dealerr through the new General Motors organization, McCollunm said.
GM also wantx disputes over the agreements to play out in New York despite laws that give Floridaq jurisdiction insuch matters. McCollukm is asking the court to “affirj that the relationship between New GM and its Florida dealer will be governed byFlorida law” and order any new agreementg that does not follow Florida law to be “invalisd and unenforceable.” “In the event the court approvews the sale motion, it should clarift that such approval does not validate the attemp to evade Florida law by amendinh the dealer franchise agreements,” McCollum said.
The new agreements creat an ultimatum along the lineof “take it or leave it,” McCollum meaning dealers either have to lose the protections of Florida law or lose thei r business. The New GM could have some problems doing businesxs if such stipulations in agreementss with dealerswould remain, McCollum said. The new company wouldf have to apply for a new licensd to operatein Florida, and it couldc have that application denied if state officialas feel the company is working to circumvenft state law.