Quote:
Originally Posted by Captain Awesome
The articles I am reading are talking about them suing GM over the closings. I don't know what legal grounds they plan on using. It seems like they should have none because a contract renewal should be at the discretion of GM. But they have threatened to sue, so we should be seeing who's one the list through the court system.
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I'm not sure, but if GM wants a dealer to close or stop selling a certain brand, they have to pay the dealer a buyout fee to give up the franchise. GM also has to show a reason why they are not renewing the franchise agreement. Basically, customer complaints and low profits aren't good enough; the dealer has to either be doing something illegal or something really egregious. GM had to pay a ton of money to dealers when they got rid of Oldsmobile. But since GM is going into bankruptcy, those laws trump any state franchise laws.