A corporation that buys the assets of another corporation does not assume the other's liability unless:

Question

Quizplus · Accepted Answer

All of these conditions can result in the purchasing corporation assuming the liabilities of the selling corporation. This includes a sale made to fraudulently avoid liabilities, an express or implied agreement to assume liabilities, or a transaction that effectively consolidates or merges the two corporations.

A Corporation That Buys the Assets of Another Corporation Does