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Car dealers have known bankruptcy law, and the terms of their franchises, all along

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Trocadero Donating Member (892 posts) Send PM | Profile | Ignore Thu Jun-11-09 01:33 AM
Original message
Car dealers have known bankruptcy law, and the terms of their franchises, all along
Edited on Thu Jun-11-09 01:34 AM by Trocadero
Bankruptcy law has for quite some time provided that certain obligations of the bankrupt party can be avoided by the bankruptcy court.

That's why you take prudent steps to mitigate that risk, either in your contract, your operations, your insurance, etc. As a part of ANY business transaction, one of the basic questions you always ask is - what if the other party goes bankrupt? What is my exposure? How do I avoid or mitigate that risk?

This is not some strange new bizarre area of the law. This is established bankruptcy law, and the dealers knew or should have always known - this is how the law works.

The dealers would also have the benefit of the avoidance provisions if they filed for bankruptcy.

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Trajan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-11-09 01:36 AM
Response to Original message
1. Yeah .....
And those damned dealerships with all their well paid mechanics and technicians and counterpersons can all go to hell too !

Right ?
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Trocadero Donating Member (892 posts) Send PM | Profile | Ignore Thu Jun-11-09 01:39 AM
Response to Reply #1
2. if you don't like the law, then change the law. But until that time
dealers should have seen this coming a mile away, and they do not have an entitlement that favors them over any other person or entity in the market.
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Trajan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-11-09 01:44 AM
Response to Reply #2
3. That's what I said ...
Edited on Thu Jun-11-09 01:44 AM by Trajan
Fuck'm .....

Law of the jungle and all that rot .....

Cant read the fine print ? ... You deserve to lose it all ...
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