Liability Apply It: Successor Liability Total points: /100 Jensen indemnity, Inc, agreed to insure Porter Racing League race cars for damage incurred during on:track accidents. Jensen Indemnity deposited $400,009 with Parts CO4 a Colorado firm that manufactured auto parts, 50 that it could bey 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: lensen 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 corporotion that buys the assets of another? Are there exceptions? Which principles apply in this case? The contract between Bourdain and Parts specifically liability for returning deposits. The agreement between Parts and Bourdain most likely focto merger or consolidation because Bourdain continue the business with the same shareholders, derectors, and officers, it that Bourdain bought the assets for any fraudulent purpose; and it that an exception to assumption of liability exists. In this circumstance, jensen Inderrinity, Inc, will have to recover. its deposit from What if the Facts Were Different? Case Problem Analysis: Successor Liability. Apply It: Successor Liability Total points: 1100 Attempts left: 1 Jensen Indernnity, Inc., agreed to insure Porter Racing League race cars for What If the Facts Were Different? damnge incurred during on track accidents. lensen indemnity deposited $400,000 with Parts Co. a Colorado firm that manufactured auto parts, 30 . that it could buy parts for darnaged 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, Incy a Georgia corporation, flourdain 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 indernnity filed a swit in a eorgla state court against Bourdain, seeking to recover its deposit. What is the rule concerning the liability of a corporation that beys the assets of another? Are there exceptions? Which principles apply in this case? Assume that instead of deciding to retire, the owners of Parts Co. decided that they were simply tired of being in charge of all the details: of running a business but still wanted to do business. They worked with Hourdain Motorsports, Ink, to have flourdain purchase the assets of the company, with the contract disclaiming any assumption of liabilitien. Then Parts was shut down, and Bourdain hired the owners and alf of the employees to run a division of Baurdain doing essentially the same. business that Parts had done. The prior owners of Parts became shareholders in Bourdain. Does Jourdain assume the liabilities of Parts? This transaction is labeled as a The contract In this transaction expressly the labilities of Parts. it that this transaction was commenced Liability Apply It: Successor Liability Total points: /100 Jensen indemnity, Inc, agreed to insure Porter Racing League race cars for damage incurred during on:track accidents. Jensen Indemnity deposited $400,009 with Parts CO4 a Colorado firm that manufactured auto parts, 50 that it could bey 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: lensen 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 corporotion that buys the assets of another? Are there exceptions? Which principles apply in this case? The contract between Bourdain and Parts specifically liability for returning deposits. The agreement between Parts and Bourdain most likely focto merger or consolidation because Bourdain continue the business with the same shareholders, derectors, and officers, it that Bourdain bought the assets for any fraudulent purpose; and it that an exception to assumption of liability exists. In this circumstance, jensen Inderrinity, Inc, will have to recover. its deposit from What if the Facts Were Different? Case Problem Analysis: Successor Liability. Apply It: Successor Liability Total points: 1100 Attempts left: 1 Jensen Indernnity, Inc., agreed to insure Porter Racing League race cars for What If the Facts Were Different? damnge incurred during on track accidents. lensen indemnity deposited $400,000 with Parts Co. a Colorado firm that manufactured auto parts, 30 . that it could buy parts for darnaged 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, Incy a Georgia corporation, flourdain 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 indernnity filed a swit in a eorgla state court against Bourdain, seeking to recover its deposit. What is the rule concerning the liability of a corporation that beys the assets of another? Are there exceptions? Which principles apply in this case? Assume that instead of deciding to retire, the owners of Parts Co. decided that they were simply tired of being in charge of all the details: of running a business but still wanted to do business. They worked with Hourdain Motorsports, Ink, to have flourdain purchase the assets of the company, with the contract disclaiming any assumption of liabilitien. Then Parts was shut down, and Bourdain hired the owners and alf of the employees to run a division of Baurdain doing essentially the same. business that Parts had done. The prior owners of Parts became shareholders in Bourdain. Does Jourdain assume the liabilities of Parts? This transaction is labeled as a The contract In this transaction expressly the labilities of Parts. it that this transaction was commenced