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?

  • CreatedJune 18, 2014
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