Fact Pattern 31-6 Sweet Inc. acquires all of the assets of Tart Inc . by direct purchase.
Refer to Fact Pattern 31-6. Sweet assumes the liabilities of Tart if
A) a court imposes the liabilities on Sweet.
B) the sale does not amount to a merger or a consolidation.
C) Sweet replaces Tart's personnel and does not continue Tart's business.
D) the sale was done with fair notice to all creditors.

Question

Quizplus · Accepted Answer

A court can impose liabilities on Sweet if it determines that the acquisition effectively amounts to a continuation of Tart's business or if other legal grounds exist for such imposition.