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

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The objection was filed with the ’xs Southern District of New York, where General Motors GMGMQ) filed for Chapter 11 bankruptcy protection earlier this Inthe filing, McCollum said that General Motors has “misused bankruptcy-enhanced bargaining power and forced automotive dealerds to waive the very state laws that were designed to protectf them from such overreaching The problem stems from GM asking dealeres to agree to waive several protectionzs under Florida law before they can be considered a dealere 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 matters.
McCollum is askinfg the court to “affirm that the relationshipp between New GM and its Florida dealerse will be governed by Florida and order any new agreement that does not follow Florida law tobe “invalid and unenforceable.” “Ibn the event the court approves the sale it should clarify that such approvalp does not validate the attempt to evade Florida law by amending the deale franchise agreements,” McCollum said. The new agreements create an ultimatum along the lineof “take it or leave McCollum said, meaning dealers either have to lose the protectionss of Florida law or lose their business.
The New GM coulrd have some problems doing business if such stipulationw in agreements with dealerszwould remain, McCollum said. The new compang would have to applgy for a new license to operatein Florida, and it couldr have that application denied if state officialxs feel the company is working to circumventf state law.