TX Attny Gen. Says GM Contracts to Close Dealerships Violates Texas Law

By: AP Email
By: AP Email

AUSTIN, Texas (AP) - Texas Attorney General Greg Abbott says
General Motors is trying to force car dealers into contracts that
violate Texas law.
Abbott filed an objection Friday in GM's pending bankruptcy case
in federal court in New York.
Abbott says the contracts are a "take-it-or-leave" deal that
prevents dealers from selling other brands, requires them to order
new GM cars they may not want to sell and alters state law
regarding dealer locations.
Abbott said he doesn't think the Texas action will slow down
GM's bankruptcy proceedings, but he wants the court to recognize
state laws regulating dealerships.
Texas has 415 franchised GM auto dealers.


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