Question
Preston Corporation sold all of its assets to Adam Corporation in exchange for Adam stock. Preston then distributed the stock to its shareholders, without paying
Preston Corporation sold all of its assets to Adam Corporation in exchange for Adam stock. Preston then distributed the stock to its shareholders, without paying a debt of $150,000 owed to a major supplier, Corey. Corey, upon discovery that Preston is now an empty shell, attempts to recover the debt from Adam. What is the result? Why?
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Smith and Robersons Business Law
Authors: Richard A. Mann, Barry S. Roberts
17th edition
1337094757, 978-1337514408, 1337514403, 978-0357691571, 978-1337094757
