Friday, January 1, 2010

Chrysler sues 4 states over dealer laws | The Detroit News

Legal changes interfere with closings, violate bankruptcy code, Constitution, carmaker says

Tiffany Kary / Bloomberg News

Chrysler LLC sued the Oregon Attorney General and officials in Maine, North Carolina and Illinois, saying recent changes to those states' dealerlaws violate the bankruptcy code and the U.S. Constitution.

Chrysler says the new laws interfere with the car company's rejection of 789 dealers as part of its sale to Italy's Fiat SpA.

The lawsuit was filed in Manhattan bankruptcy court by reorganized Chrysler as well as its bankrupt estate.

It seeks a court order declaring the laws unconstitutional and in conflict with a bankruptcy judges orders. - News - The Detroit News read more

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