A revision to the bankruptcy agreement under which a “new GM”
will acquire most of the assets of the existing corporation has been amended
to ensure that GM consumers will continue to have rights under state lemon laws.
Changes were made to the agreement at the urging of state attorneys general
who felt that the agreement as initially written stripped the states of
oversight in such maters as product liability and disputes with dealers
as well as lemon law claims. The amendments to the agreement came out
of legal objections filed by the National Association of Attorneys General
with the bankruptcy court.
lemon law rights, a paragraph in the agreement now reads, “the purchaser has assumed
the sellers’ obligations under state ‘lemon law’ statutes,
which require a manufacturer to provide a consumer remedy when the manufacturer
is unable to conform the vehicle to the warranty.
This is good news for GM car owners. Consumer advocates in many states
have battled for years to build up protections to ensure that the warranty
the manufacturer issues when you buy a car will be honored. Sweeping those
protections aside for the roughly 20% market share that GM still holds
would have been a major blow to all those who depend on their cars and
rely on lemon laws to assist with these matters.