The $446 billion spending bill President Obama signed earlier this week contains new legislation requiring GM and Chrysler to send out letters to every rejected dealer informing them of their rights to arbitration. Dealers interested in filing arbitration will then have 40 days to submit their intention to file. From there, arbitration must be completed within six months. Automotive News reports that the new law is substantially more dealer-friendly than the old law, and requires GM and Chrysler to spell out exactly why each dealership contract was terminated.
In an earlier report, Automotive News reported that it could cost dealers up to $12,000 in arbitration filing fees and up to $100,000 in arbitration depending on the complexity of the case.
[Source: Automotive News sub. req'd | Image: Spencer Platt/Getty]