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Texas Attorney General objects to GM and the Federal Bankruptcy Court
Attorney General Greg Abbott has filed an objection to the GM bankruptcy plan ok’ed by the US government. Texas law regulating dealers and competition will be pushed aside for the benefit of the new federally owned GM. Abbott has be quoted saying “federally owned GM guts Texas statutes that regulate car dealers – and flaunts U.S. Supreme Court precedent that upholds our state-based dealership structure.”
State Capital Building
Attorney General Greg Abbott has filed an objection to the GM bankruptcy plan ok’ed by the US government. Texas law regulating dealers and competition, as mentioned by this DUI Lawyer, Brian Jones, will be pushed aside for the benefit of the new federally owned GM. Abbott has be quoted saying “federally owned GM guts Texas statutes that regulate car dealers – and flaunts U.S. Supreme Court precedent that upholds our state-based dealership structure.”
Since GM filed for Chapter 11 on June 1st Abbott has been concerned for the 415 Texas GM franchises, with GM’s proposed dealership agreements, which dealers must sign to keep selling GM cars. FINRA arbitration lawyer says the new agreements avoid Texas franchise laws and limit dealers’ ability to sell other types of cars, overrule current laws on where dealers can be located and limit warranty claims under current Texas law.
Source: Dallas Morning News
