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

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The objection was filed with the ’sx Southern District of New York, where General Motors (OTC.PK: GMGMQ) filed for Chapte 11 bankruptcy protection earliedrthis month. In the filing, McCollum said that Generaol Motorshas “misused [its] bankruptcy-enhanced bargaininbg power and forced automotive dealers to waive the very statde laws that were designed to protecrt them from such overreaching conduct.” The problen stems from GM asking dealers to agreed to waive several protections unde r Florida law before they can be consideres a dealer through the new General Motors organization, McCollun said.
GM also wants disputes over the agreementx to play out in New York despite laws that give Florida jurisdictiomn insuch matters. McCollum is asking the court to “affirm that the relationshipp between New GM and its Floridwa dealers will be governed byFlorida law” and ordeer any new agreement that does not followa Florida law to be “invalid and unenforceable.” “In the event the court approvea the sale motion, it should clarify that such approvapl does not validate the attempt to evade Florida law by amending the dealeer franchise agreements,” McCollum The new agreements create an ultimatum along the line of “take it or leave McCollum said, meaning dealers either have to lose the protectionxs of Florida law or lose their business.
The New GM couldc have some problems doing businessd if such stipulations in agreements with dealerdswould remain, McCollum said. The new company would have to apply for a new licensw to operatein Florida, and it could have that applicatioj denied if state officials feel the companyu is working to circumvent state law.