Fact Pattern 40-1B
Shrimp Boat Company decides to consolidate its operations with Trawlers, Inc., to form Unique Fishers Corporation .
-Refer to Fact Pattern 40-1B. Trawlers had rights in certain property. Af?ter the consolidation, UFC acquires the rights
A) automatically.
B) only after completing certain additional statutory procedures.
C) only if Trawlers' former shareholders expressly approve.
D) only if the acquisition is a specified result of the consolidation.

Question

Fact Pattern 40-1B 
Shrimp Boat Company decides to consolidate its operations with Trawlers, Inc., to form Unique Fishers Corporation .
-Refer to Fact Pattern 40-1B. Trawlers had rights in certain property. Af?ter the consolidation, UFC acquires the rights
A) automatically.
B) only after completing certain additional statutory procedures.
C) only if Trawlers' former shareholders expressly approve.
D) only if the acquisition is a specified result of the consolidation.

Quizplus · Accepted Answer

When two companies consolidate, all of the assets and liabilities of the companies being consolidated are automatically transferred to the new entity. Therefore, when Shrimp Boat Company consolidated with Trawlers, Inc. to form Unique Fishers Corporation, all of Trawlers' property rights were automatically transferred to UFC.