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

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The objection was filed with the ’as Southern District of New York, where General Motors (OTC.PK: GMGMQ) filed for Chapter 11 bankruptcgy protection earlierthis month. In the McCollum said that Genera l Motorshas “misused [its] bankruptcy-enhanced bargaininb power and forced automotivse dealers to waive the very statew laws that were designed to protect them from such overreachingh conduct.
” The problem stems from GM askinv dealers to agree to waive several protectiones under Florida law before they can be considered a deale 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 McCollum is asking the court to “affirm that the relationshiop between New GM and its Florida dealers will be governed by Florida law” and order any new agreementy that does not follow Florida law to be “invalid and “In the event the court approves the sale motion, it should clarify that such approval does not validatde the attempt to evade Florida law by amendinhg the dealer franchise agreements,” McCollum said.
The new agreements create an ultimatum along the lineof “takde it or leave it,” McCollum said, meaning dealer either have to lose the protections of Florida law or lose theirf business. The New GM couldr have some problems doing business if such stipulationa in agreements with dealerswould remain, McCollum said. The new company would have to applgy for a new license to operateein Florida, and it could have that application denies if state officials feel the companh is working to circumvent state law.