Chrysler has asked the U.S. Bankruptcy Court to block a new Colorado dealer reinstatement law.  Chrysler has taken similar action against laws of this kind in four other states.  Chrysler is asking the Bankruptcy Court in New York to determine that the Colorado law, enacted last month, is pre-empted by federal bankruptcy laws.  The new Colorado law requires Chrysler and General Motors to offer a rejected dealership the right of first refusal if the company wants to reopen a point in the rejected dealer’s old market. If the automaker already has re-awarded such a franchise, it must offer to reinstate the rejected dealership or compensate it.

In December, Chrysler filed complaints in the same Bankruptcy Court last December seeking to block similar laws enacted by Illinois, Oregon, Maine and North Carolina.  While North Carolina backed off enforcement of its law in a settlement with Chrysler this month; Illinois, Oregon and Maine are continuing to contest Chrysler’s complaint.