Making Sense of Successor Liability
50 Pages Posted: 10 Mar 2016
Date Written: 2003
Abstract
A firm that buys assets from another firm ordinarily does not acquire liability to the seller's creditors simply by buying its assets. This ordinary rule is subject to important exceptions. The buyer's consent triggers an exception. If a buyer agrees to assume the seller's liability to third parties, it is for that reason liable. This article considers a more controversial exception - successor liability. When a court decides that an asset acquirer should be treated as a "successor" to the transferor, it is liable for the transferor's debts as though it were the transferor.
Suggested Citation: Suggested Citation
Reilly, Marie T., Making Sense of Successor Liability (2003). Hofstra Law Review, Vol. 37, No. 745, 2003, Penn State Law Research Paper, Available at SSRN: https://ssrn.com/abstract=2744943
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.