Ohio AG objects to Chrysler sale

By Chris Rizo | May 26, 2009

Richard Cordray (D)

COLUMBUS, Ohio (Legal Newsline)-Ohio Attorney General Richard Cordray says Chrysler LLC should not be able to sell until it resolves how it will maintain car buyers' rights under the state's Lemon Law.

Cordray is among officials who say they want to know how Chrysler's prospective purchaser Fiat will resolve claims by motorists that they purchased a defective car.

"We are carefully monitoring the developments of this fast-moving case and continue to work aggressively to protect Ohio's interests," Cordray said. "Ohio's Lemon Law goes beyond the terms of a general warranty and this objection seeks to ensure that consumers will maintain that protection."

In papers filed in the Southern District of New York, the Democratic attorney general is asking a bankruptcy judge to block Auburn Hills, Mich.-based Chrysler's pending sale until the Lemon Law issues are resolved.

Cordray had previously objected to the sale because it could saddle the Ohio Bureau of Workers' Compensation with Chrysler's self-insured worker's compensation claims.

From Legal Newsline: Reach staff reporter Chris Rizo at chrisrizo@legalnewsline.com.

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