Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 15

Purchase of Assets. Grand Adventures Tour Travel Publishing Corp. (GATT), a Texas corporation, provided travel services to interliners (airline employees). Duane Boyd was a GATT director when the firm hired him as an unpaid consultant to address its financial problems. Consequently, Boyd resigned his directorship and made loans to GATT for security interests in its assets. GATT defaulted on the loans. Boyd incorporated Interline Travel Tour, Inc., and transferred all rights under his loans to GATT to Interline. At a public sale, Interline bought GATT's assets. Interline moved into GATT'soffice building, began to provide travel services to GATT's customers, and hired former GATT employees. Another GATT creditor, Call Center Technologies, Inc., filed a complaint in a federal district court to collect the unpaid amount on a contract with GATT from Interline. Is Interline liable? Why or why not? [ Call Center Technologies, Inc. v. Grand Adventures Tour Travel Publishing Corp., 635 F.3d 48 (2d Cir. 2011)]