Paradise Pools, Inc. (PPI), also known as Paradise Pools and Spas, was incorporated in 1981.In 1994, PPI

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Paradise Pools, Inc. (PPI), also known as “Paradise Pools and Spas,” was incorporated in 1981.In 1994, PPI entered into a contract with Bromanco, Inc., to build a pool in Vicksburg, Mississippi, as part of a Days Inn Hotel project being developed by Amerihost Development, Inc. PPI built the pool, but Bromanco, the general contractor, defaulted on other parts of the project, and Amerihost completed the construction itself. Litigation ensued in Mississippi state courts, and Amerihost was awarded $12,656.46 against PPI. Meanwhile, Paradise Corp.(PC) was incorporated in 1995 with the same management as PPI, but different shareholders. PC acquired PPI’s assets in 1996, without assuming its liabilities, and soon became known as “Paradise Pools and Spas.” Amerihost obtained a writ of garnishment against PC to enforce the judgment against PPI.PC filed a motion to dismiss the writ on the basis that it was “not a party to the proceeding.”Should the court dismiss the case? Why or why not?

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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