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 Parts'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 Identifying the Facts and Issues Generally, a corporation that purchases the select answer select answer a second corporation liabilities of the second corporation Attempts left: 1 of assume the debts and There are four exceptions where the purchasing corporation assumes both the assets and the liabilities of the other company The first is when the purchasing corporation select answer assume the seller's abilities The second exception is when the transaction is a select answer merger or consolidation