GM trying to strong-arm Florida dealers, McCollum says - Business First of Columbus:

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The objection was filed with the ’s Southern District of New where GeneralMotors (OTC.PK: GMGMQ) filed for Chapter 11 bankruptchy protection earlier this month. In the McCollum said that General Motorsehas “misused [its] bankruptcy-enhanced bargaining power and forcee automotive dealers to waive the very stated laws that were designed to protec them from such overreaching conduct.” The problem stemd from GM asking dealers to agree to waive several protections under Florida law before they can be considerer a dealer through the new General Motors organization, McCollumk said.
GM also wants disputes over the agreements to play out in New York despite laws that give Florida jurisdictiomn insuch matters. McCollum is askinhg the court to “affirm that the relationship between New GM and its Floridw dealers will be governed byFlorida law” and order any new agreement that does not follow Floridw law to be “invalid and unenforceable.” “In the even the court approves the sale motion, it should clarifyt that such approval does not validat e the attempt to evade Florida law by amending the dealef franchise agreements,” McCollum said.
The new agreements creatd an ultimatum along the lineof “taks it or leave it,” McCollumk said, meaning dealers either have to lose the protections of Floridaz law or lose theirf business. The New GM could have some problems doing business if such stipulations in agreementds with dealerswould remain, McCollum said. The new companyh would have to applyu for a new license to operatewin Florida, and it could have that applicatiohn denied if state officials feel the company is working to circumvenf state law.