Fact Pattern 41-1A (Questions A3-A5 apply)
Cherry Grove Apartments,Inc.,merges with Dutch Elm Realty,Inc.Only Dutch Elm remains.
-Refer to Fact Pattern 41-1A.Cherry Grove held rights in certain real property.After the merger,Dutch Elm acquires the rights
A)automatically.
B)only after completing certain additional statutory procedures.
C)only Cherry Grove's former shareholders expressly approve.
D)only if the acquisition is a specified result of the merger.

Question

Quizplus · Accepted Answer

In a merger, all of the assets and liabilities of the merging company are automatically transferred to the surviving company without the need for additional procedures or approvals, unless otherwise specified in the merger agreement. Therefore, Dutch Elm would automatically acquire the rights to the real property previously held by Cherry Grove.

Fact Pattern 41-1A (Questions A3-A5 Apply)