Generally the place that would have primary jurisdiction over this situation would be where the contract stated both parties would pursue their differences (sometimes known as a "choice of law" clause). If there is no such clause then the pursuit would be where the contract was signed and not where the problems took place. It would be very wise to consider contacting a PA barred attorney to assist you, or pursue this yourself via small claims court.
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This is very possible that it may affect the terms but unlikely. Because the person is not losing the car or obtaining a blemish on credit, his situation is not in any way being changed. I still suggest you see a local attorney to obtain a full answer but as this is not material or vital to the divorce, it should likely play a minimal role.
Such a requirement is valid, and the company is free to request that you re-sign the terms. I would suggest that you review the non-compete with your attorney as the conditions may be too restrictive and therefore possibly invalid.
Generally speaking such behavior is permitted if an outstanding balance on the vehicle exists (that is, if you still owe money on repairs to the mechanic). Consider paying off the debts owed, or retain an attorney to attempt to use the courts as a means of getting your vehicle back. Paying for the repairs will probably be cheaper and quicker.