GM Can Terminate Dealership After Warranty Claims Dispute

A lower court properly ruled that General Motors Co. was within its rights to terminate a franchise agreement with a New Jersey dealership that submitted false warranty claims, a federal appeals court said.

Mall Chevrolet Inc. failed to show that there was a genuine dispute of material fact over its violation of its franchise agreement with GM, the US Court of Appeals for the Third Circuit said. The franchisee submitted more than 500 false warranty claims to GM, in violation of the agreement, and was asked to pay more than $650,000 in chargeback payments for the fraudulent payouts.

Mall Chevrolet ...