1. Generally, a corporation that purchases the assets of another is not automatically responsible for the liabilities...
Question:
1. Generally, a corporation that purchases the assets of another is not automatically responsible for the liabilities of the selling corporation, with some exceptions. Which exception applied to this case? Explain.
2. How does this case illustrate the kinds of problems that can arise over contract interpretation?
3. Why is an acquiring corporation shouldered with the liabilities of an acquired corporation when the acquirer was most likely not involved in the circumstances that gave rise to the liabilities?
4. How might the Internet prevent a prospective acquiring company from unknowingly assuming the liabilities in a purchase of assets?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
1A One of the exceptions is that the purchasing corporation will be responsible for the liabilities ...View the full answer
Business Law Text and Cases
ISBN: 978-1285185248
13th edition
Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross
