Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build a pool as part

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Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build a pool as part of a hotel being developed by Takahashi Development. PPI built the pool, but Vittorio, the general contractor, defaulted on other parts of the project. Takahashi completed the construction. Litigation followed, and Takahashi was awarded $18,656 against PPI. Meanwhile, Paradise Corp. (PC) was incorporated with the same management as PPI, but different shareholders. PC acquired PPI’s assets, without assuming its liabilities, and soon became known as “Paradise Pools and Spas.” Takahashi sought to obtain a writ of garnishment against PC to enforce the judgment against PPI. Is PC liable for PPI’s obligation to Takahashi? Why or why not? (See Purchase of Assets.)

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Business Law Text And Cases

ISBN: 9780357129630

15th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller

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