Chrysler Group LLC has settled a lawsuit that was filed against the state of North Carolina. The suit involved a law in that state that gives dealers the right to block the automaker’s plan to thin its dealership ranks. The automaker said in a statement that North Carolina has agreed not to enforce a recently-passed law that gives dealers who were cut by Chrysler the right to challenge or stop the company from awarding new franchises in their areas.
Chrysler says it will pursue lawsuits against Oregon, Maine and Illinois, which recently enacted similar laws. Chrysler claimed in a lawsuit filed last year with the U.S. Bankruptcy Court in New York that the state laws are trumped by the bankruptcy court order approving plans to shed 789 dealerships.
Source: Associated Press
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