|
I am a consumer who bought repair services. THe company that did the
repair was sold--less then a year ago. Who is responsible for the
warranty? If I ask the buyer, they'll say the bought the company and
can't be responsible for someone elses mistake. If I ask the seller,,
they'll say they sold the company and have no further responsibility.
Here I am going to show my ignorance of law and say that I saw on the
People's Court a case where somone who sold the business had to assume
some liability because they kept the same DBA. This company was part
of a franchise. It is now under private ownership under the same name,
but without the franchise.
Who do I have recourse with, the seller or the buyer?
neonBikini
|
| |
| |
"neon_bikini" <neon_bikini@hotmail.com> wrote in
misc.legal.moderated:
I am a consumer who bought repair services. THe company that did the
repair was sold--less then a year ago. Who is responsible for the
warranty? If I ask the buyer, they'll say the bought the company and
can't be responsible for someone elses mistake. If I ask the seller,,
they'll say they sold the company and have no further responsibility.
It could be one or the other, but it can't be both. It depends on
whether the original business sold the entire business (assets and
liabilities), or only the assets. Unfortunately it may be hard to
get a straight answer, as both of them have an incentive to lie.
Ultimately, if the buyer says "we bought only the assets" and the
seller says "we sold the whole business", you could sure them _both_
in small claims court and let the judge decide.
Here I am going to show my ignorance of law and say that I saw on the
People's Court a case where somone who sold the business had to assume
some liability because they kept the same DBA. This company was part
of a franchise. It is now under private ownership under the same name,
but without the franchise.
Whether the new business keeps the name of the old business doesn't
matter to your question. The business name is an asset. It is quite
possible for the seller to sell only the assets of the business. It
is also possible to sell the whole business except for the name, or
the whole business including the name.
--
If you e-mail me from a fake address, your fingers will drop off.
I am not a lawyer; this is not legal advice. When you read anything
legal on the net, always verify it on your own, in light of your
particular circumstances. You may also need to consult a lawyer.
Stan Brown, Oak Road Systems, Cortland County, New York, USA
http://OakRoadSystems.com
|
| |
| |
neon_bikini@hotmail.com (neon_bikini) wrote:
I am a consumer who bought repair services. THe company that did
the repair was sold--less then a year ago. Who is responsible
for the warranty? If I ask the buyer, they'll say the bought the
company and can't be responsible for someone elses mistake. If I
ask the seller,, they'll say they sold the company and have no
further responsibility.
If it's a corporation and the stock of the corporation was sold, the
corporation is still responsible to you.
If the actual business was sold as opposed to the business entity,
ask to see their bulk transfer documentation (Article 6 of the
Uniform Commercial Code). If they did not comply with that law, the
new owner may be responsible for what the former owner did. If they
did comply with the law, there may be a fund you can make a claim
against.
Here I am going to show my ignorance of law and say that I saw
on the People's Court a case where somone who sold the business
had to assume some liability because they kept the same DBA.
What happens in People's Court, or any small claims court, is not
necessarily what the law says.
Stu
|
| |
| |
In article <8kbg60tg8erhl0sc0c2m6nn6f9pb7mrkbh@4ax.com>, neon_bikini
<neon_bikini@hotmail.com> wrote:
I am a consumer who bought repair services. THe company that did the
repair was sold--less then a year ago. Who is responsible for the
warranty? If I ask the buyer, they'll say the bought the company and
can't be responsible for someone elses mistake. If I ask the seller,,
they'll say they sold the company and have no further responsibility.
Here I am going to show my ignorance of law and say that I saw on the
People's Court a case where somone who sold the business had to assume
some liability because they kept the same DBA. This company was part
of a franchise. It is now under private ownership under the same name,
but without the franchise.
This depends on how the sale of the business was done. If it was
sold as a going concern, then the new business is likely still
responsible. If, however, the new people only bought the assets
of the old business, and the new business is a different entity,
then they are likely off the hook. But, they should still honor
warranties as a matter of principal if they want to keep all of
the old business coming back.
-john-
--
====================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
====================================================================
|
| |
| |
I am a consumer who bought repair services. THe company that did the
repair was sold--less then a year ago. Who is responsible for the
warranty? If I ask the buyer, they'll say the bought the company and
can't be responsible for someone elses mistake. If I ask the seller,,
they'll say they sold the company and have no further responsibility.
Here I am going to show my ignorance of law and say that I saw on the
People's Court a case where somone who sold the business had to assume
some liability because they kept the same DBA. This company was part
of a franchise. It is now under private ownership under the same name,
but without the franchise.
Who do I have recourse with, the seller or the buyer?
neonBikini
One of the two, but it's a little hard to say which....
If the repair company was sold in a sale of assets, which would be
common for something like a small repair shop, then it is likely to
depend on how the sale was handled. If the sale was handled properly
and in order, with notice to major creditors and all, then the buyer
takes free of any of the seller's obligations: you have a warranty
with an out-of-business repairman, and you might as well try getting
blood from a turnip.
If the company's stock, not just its assets, was sold, or the laws on
bulk sales weren't followed, the obligation to service the warranty
passed to the buyer, and now you have a warranty that the buyer has to
honor.
The fact that the DBA is the same isn't relevant. The most important
factor is, was the business transferred by a sale of assets that
conformed to local laws governing bulk sales. If so, the warranty
obligation remained with the seller, which for practical purposes
extinguishes it.
If the amount of money or the need for warranty coverage is
significant, and the new owner isn't somebody you want to maintain a
business relationship with, you ought to see a lawyer about breach of
warranty.
--
Not a lawyer,
Chris Green
|
| |
| |
I am a consumer who bought repair services. THe company that did the
repair was sold--less then a year ago. Who is responsible for the
warranty? If I ask the buyer, they'll say the bought the company and
can't be responsible for someone elses mistake. If I ask the seller,,
they'll say they sold the company and have no further responsibility.
Here I am going to show my ignorance of law and say that I saw on the
People's Court a case where somone who sold the business had to assume
some liability because they kept the same DBA. This company was part
of a franchise. It is now under private ownership under the same name,
but without the franchise.
Who do I have recourse with, the seller or the buyer?
neonBikini
If you have a written warranty, read it. It probably contains a
successor-in-interest clause. If you paid extra money for a service
contract, you're entitled to have those services performed; it's not a
matter of "someone else's mistake." But you don't tell us enough
about _how_ the co. was sold (sale of assets, bulk sale, merger, stock
purchase, etc.) to tell if there are ways the new owner of the co.
could get out from under those old obligations. I would assume your
first step, when a potential claim happens, is to _ask_ the new owner
to make good on the warranty. If he wants to keep up the business
goodwill (which is the main thing he bought when he bought the
business), he ought to be happy to do it. If not, _then_ figure out
what to do next. Good luck,
--
This posting is for discussion purposes, not professional advice.
Anything you post on this Newsgroup is public information.
I am not your lawyer, and you are not my client in any specific legal
matter.
For confidential professional advice, consult a lawyer in a private
communication.
Mike Jacobs
LAW OFFICE OF W. MICHAEL JACOBS
10440 Little Patuxent Pkwy #300
Columbia, MD 21044
(tel) 410-740-5685 (fax) 410-740-4300
|
| |
| |
In article <tc6j601vpv5h6e3sdc9dtc0c3vimntgh07@4ax.com>,
Stuart O. Bronstein <spamtrap@lexregia.com> wrote:
If it's a corporation and the stock of the corporation was sold, the
corporation is still responsible to you.
If the actual business was sold as opposed to the business entity,
ask to see their bulk transfer documentation (Article 6 of the
Uniform Commercial Code).
The web tells me that UCC Article 6 is not law in most states.
In Massachusetts it was repealed in 1996.
--
John Carr (jfc@mit.edu)
|
| |
| |
|
