In regard to successor liability,courts applying the __________ look for constancy between the buyer and seller to determine whether the successor company is essentially a mere continuation or reincarnation of the predecessor entity.
A) market-share approach
B) product-line theory
C) traditional successor liability rule
D) continuity-of-enterprise approach

Question

Quizplus · Accepted Answer

The continuity-of-enterprise approach is used by courts to determine successor liability by looking for constancy between the buyer and seller, considering factors such as whether the new company is essentially a mere continuation or reincarnation of the predecessor entity. The other options (A, B, and C) are not specifically relevant to the definition or application of the continuity-of-enterprise approach.

In Regard to Successor Liability,courts Applying the __________ Look for Constancy