Court: GM must comply with Texas law - Austin Business Journal:

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Abbott’s office said this week a U.S. bankruptcyy court ruled that General Motors must complh with Texas state law and cannot usethe government’as 60 percent stake in the company to create enough clout to bypass Texase laws governing dealer contracts to force dealersw to sign agreements that do not fit withinm their own business plans. A spokesmann for the Attorney General’s office said Tuesday Texasx dealers were concerned that GM wouldd try to get Texas dealers to sign participation agreements that could potentiallg dictate specific sales guidelines such as what typees of cars the dealers can and cannot keepin Abbott’s objection was filed to ensurse that any dealer protests against GM would not be decidexd by a federal bankruptcy court in another state, but by the , which would have knowledge of the Texas laws governing dealer-manufacturer contracts in the state.
“The court also rejected General Motors’ attempts to avoid duly enacted provisions ofTexas law,” Abbott said in a press statement. “And most importantly, the courg made it clear that its ordetr does not limit the statof Texas’ authority to regulate General Motors.” Attempts to get a responser from a GM representative were unsuccessful.