A company purchasing assets of another company will be held strictly liable for any claims by plaintiffs made with regard to those assets.

Question

Quizplus · Accepted Answer

While the general rule is that a company purchasing assets of another company does not assume liability for the seller's obligations and liabilities, there are exceptions to this rule. In certain circumstances, such as when the purchaser is a "successor in interest" or when the transaction is a de facto merger, the purchasing company may be held liable for the seller's liabilities. However, this is not a strict liability standard and would depend on the specific facts of the case.

A Company Purchasing Assets of Another Company Will Be Held