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

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The objection was filed with the ’s Southernn District of New York, where Generapl Motors (OTCBB: GMGMQ) filexd for Chapter 11 bankruptcy protectioj earlierthis month. In the McCollum said that General Motorshas “misused [its] bankruptcy-enhanced bargaininvg power and forced automotive dealers to waive the very state laws that were designed to protect them from such overreaching conduct.” The problem stems from GM askinbg dealers to agree to waive several protectionz under Florida law before they can be consideresd a dealer through the new General Motorss organization, McCollum said.
GM also want s disputes over the agreements to play out in New York despite laws that give Florida jurisdictionj insuch matters. McCollum is asking the court to “affirmm that the relationship between New GM and its Floridaz dealers will be governer byFlorida law” and ordee any new agreement that does not follow Floridas law to be “invalid and unenforceable.” “In the event the court approveas the sale motion, it should clarify that such approvalp does not validate the attempgt to evade Florida law by amendint the dealer franchise McCollum said.
The new agreements create an ultimatum alonh the lineof “take it or leave it,” McCollum meaning dealers either have to lose the protections of Floridqa law or lose their business. The New GM coulfd have some problems doing business if such stipulationsd in agreements with dealerswould remain, McCollumm said. The new company woulr have to apply for a new license to operate in and it could have that application denied if stat officials feel the company is workingh to circumventstate law. This isn'tg the first time McCollum has intervened in acar manufacturer's , he filed a formal objection to Chryslersz attempts to terminate existing dealership agreements undeer the U.S.
Bankruptcy Code.