The U.S. Court of Appeals for the Third Circuit, in a precedential ruling, has given General Motors the green light to revoke the franchise of a New Jersey Chevrolet dealership that submitted false warranty claims for reimbursement.

The federal appeals court rejected the assertion by lawyers for Mall Chevrolet of Cherry Hill that GM’s actions violated New Jersey’s Franchise Practices Act.

Third Circuit Judge Peter Phipps. Credit: Diego M. Radzinschi/ALM