MD Attorney General Gansler Says Fiat Will Honor Chrysler Lemon Law Obligations
[I]Seeks State Law Protection for Terminated Dealers[/I]Fiat has agreed to honor the Lemon Law rights of Chrysler buyers after the Italian automobile manufacturer Fiat effectively takes control of the U.S. automaker. That was the word from Attorney General Douglas F. Gansler this week who also announced that Maryland has joined with other states to oppose Chryslers efforts to terminate dealerships in violation of State law.
Fiat agreed to honor the right to seek and obtain a refund or replacement vehicle if consumers vehicles have a significant or recurring problem to which Chrysler consumers would have been entitled following negotiations with a group of state attorneys general. The agreement has been included in an order issued by the Bankruptcy Court judge.
Maryland joined objections filed by Ohio and Illinois to Chryslers proposed termination of a number of Chrysler dealer franchises in their states on the grounds that Chrysler should only be allowed to restructure in bankruptcy consistent with state laws. Gansler said in the states filing that the proposed terminations fail to recognize protections provided for dealers under Maryland law.
A hearing on the States objections to the proposed terminations is scheduled for Tuesday, June 9th in the U.S. Bankruptcy Court in New York.
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