Tabina and Adam are the directors and majority shareholders of U.S. Imports, Inc., and Overseas Corporation. U.S.

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Tabina and Adam are the directors and majority shareholders of U.S. Imports, Inc., and Overseas Corporation. U.S. Imports owes $5,000 to International Transport, Inc. To avoid the debt, Tabina and Adam vote to sell all of U.S. Imports’ assets to Overseas. If International sues Overseas on the debt, International will

a. win because an acquiring firm always assumes a selling corporation’s liabilities.

b. win because the sale was fraudulently executed to avoid liability.

c. lose because Overseas refused to assume U.S. Imports’ debt.

d. lose because U.S. Imports has ceased to exist.

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Business Law Text And Exercises

ISBN: 9780357717417

10th Edition

Authors: Roger LeRoy Miller, William E. Hollowell

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