The entire case against the rejected Chrysler dealers revolved on one simple answer given by Fiat Executive, Alfredo Altavilla, when he was cross-examined by Dealer Counsel during the hearing to decide the fate of Chrysler. Every other witness testified that neither the US Government nor Fiat requested that Old Chrysler reject the 789 Dealer franchise contracts. Without a request by the lender (the US Government) or the purchaser (Fiat), there was no sound business judgment in Old Chrysler killing off 789 franchises. This is because when a contract is rejected in bankruptcy, Section 365(g) of the Bankruptcy Code kicks in...
