Does a corporation purchasing the principal assets of another corporation assume the predecessor's liabilities?
MultiRegion, United States of America
The following excerpt is from Wilson v. Metals USA, Inc., NO. CIV. S-12-0568 LKK/GGH (E.D. Cal. 2013):
Under California's rule of successor liability, a corporation purchasing the principal assets of another corporation does not assume the predecessor's liabilities unless one of the following exceptions applies:
Ray v. Alad Corp., 19 Cal. 3d 22, 28, 34 (1977).5
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