Case Problem Analysis: Successor Liability Jensen Indemnity, Inc., agreed to insure Porter Racing League race cars for damage incurred during on-track accidents. Jensen Indemnity deposited $400,000 with Parts Co, a Colorado firm that manufactured auto parts, so that it could buy parts for damaged cars without delay, Parts agreed to return any unspent deposit at the end of the season. Near the end of the season, the owners of Parts decided to retire and sold its assets to Bourdain Motorsports, Inc, a Georgia corporation. Bourdain expressly assumed Party's liabilities, but expressly stated in the contract that it did not assume any obligation to return unspent deposits of Parts's clients Jensen Indemnity filed a suit in a Georgia state court against Bourdain seeking to recover its deposit. What is the rule concerning the liability of a corporation that buys the assets of another? Are there exceptions? Which principles apply in this case? Apply It: Successor Liability Total points-/100 Attempts left: 1 Assume that instead of deciding to retire, the owners of Parts Co. decided that they were simply tired of being in charge of all the details of running a business but still wanted to do business. They worked with Bourdain Motorsports, Inc., to have Bourdain purchase the assets of the company, with the contract disclaiming any assumption of liabilities Then Parts was shut down, and Bourdain hired the owners and all of the employees to run a division of Bourdain doing essentially the same business that Parts had done. The prior owners of Parts became shareholders in Bourdain, Does Bourdain assume the liabilities of Parts? This transaction is labeled as a in this transaction expressly Parts it select answer to escape liability or perpetrate i business select answer Brable for Partel select answer The contract purchase of stock he liabilities of a consolidation was commenced merger purchase of er to hold hn would have in the seller's