Court: GM must comply with Texas law - Business First of Buffalo:

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Abbott’s office said this week a U.S. bankruptch court ruled that General Motors must complh with Texas state law and cannotf usethe government’s 60 percent stake in the companhy to create enough clout to bypass Texa s laws governing dealer contracts to force dealers to sign agreementsz that do not fit within their own businesd plans. A spokesman for the Attorney General’s offic said Tuesday Texas dealers were concerned that GM woulde try to get Texas dealers to sign participatio agreements that could potentially dictate specific sales guidelineds such as what type s of cars the dealers can and cannot keepin stock.
Abbott’s objection was filed to ensure that any dealer protests against GM woulf not be decided by a federal bankruptcy court inanothetr state, but by the , which would have knowledgr of the Texas laws governing dealer-manufacturer contractd in the state. “The court also rejectee General Motors’ attempts to avoid duly enacted provisionds ofTexas law,” Abbott said in a presxs statement. “And most importantly, the court made it clear that its orderd does not limit the state of authority to regulateGeneral Motors.” Attempts to get a responswe from a GM representative were unsuccessful.