Pennsylvania: Automobile emissions inspection stations case study

Business Finance

Pennsylvania contracted with Envirotest System, Inc, an Arizona company, to build 86 automobile emissions inspection stations in 25 counties ad operate them for 7 years. This contracts is worth hundreds of millions of dollars to Envirotest. But Pennsylvania legislators suddenly opposed the entire systems, claiming that it would lead to long delays and high expenses for motorists. These lawmakers urged that Pennsylvania simply stop construction of the new system. Was Pennsylvania allowed to get out of the contract because its legislators concluded the whole system is unwise?