Dorothy Inc. purchases the assets of Glenda Inc. to gain control of the company. Dorothy retains the same governing board at Glenda and keeps the company's name, Glenda. These actions may trigger what exception to the general rule that no successor liability exists in an asset transfer?

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Quizplus · Accepted Answer

The mere continuation exception applies here because Dorothy Inc. retains the same governing board and keeps the company's name, indicating a continuation of the business entity rather than a completely new entity taking over. This can trigger successor liability despite the general rule against it in asset transfers.