News & Analysis as of

Successor Liability Asset Purchase Agreements

Strafford

[Webinar] Drafting Asset Purchase Agreements: Reps, Warranties, Covenants, Conditions, Indemnity, and Other Provisions - July...

Strafford on

This CLE course will guide deal counsel in drafting and negotiating asset purchase agreements. The panel will discuss legal considerations when negotiating representations and warranties, indemnities, covenants, closing...more

Littler

Ontario, Canada Court of Appeal Confirms Past Experience with Vendor in Asset Purchase Transaction a Factor in Calculating...

Littler on

The recent decision of the Ontario Court of Appeal in Manthadi v. ASCO Manufacturing, 2020 ONCA 485, analyzed the common law approach to the calculation of reasonable notice when a vendor terminates a worker’s employment in...more

Seyfarth Shaw LLP

Are You Really Protected From Wage-and-Hour Successor Liability in an Asset Purchase?

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Seyfarth Synopsis: In acquiring a company, there is often a tendency to think an asset purchase (as opposed to a stock purchase) guarantees the purchaser will not inherit any liability (so-called “successor liability”). This...more

BCLP

The Accidental Successor: Asset Buyers Must Take Care to Avoid Unintentionally Becoming a “Perfectly Clear Successor”

BCLP on

Asset Buyers, beware.  If the Seller has union-represented employees, and you intend to hire some or all of those employees and operate the assets as a union-free employer, take care to avoid becoming an accidental successor....more

BCLP

Asset Purchasers: Beware Bans on Salary History Inquiries

BCLP on

When one employer purchases the assets of another and intends to employ some or all of the seller’s employees, it is very common for the asset purchase agreement to require the seller to disclose certain personnel information...more

Allen Matkins

Does California Recognize The De Facto Merger Doctrine Outside The Successor Liability Context?

Allen Matkins on

Yesterday, Professor Stephen Bainbridge noted that California has applied the de facto merger doctrine to an asset purchase transaction to hold the acquiring corporation liable for tort liabilities of the selling corporation....more

Butler Snow LLP

Product Line Exception to Successor Non-Liability

Butler Snow LLP on

Generally, product liabilities do not flow to the buyer of a company’s assets, which can be a driving force behind structuring a deal as an asset purchase as opposed to a corporate merger. There are four traditional...more

Littler

Puerto Rico Supreme Court Sets Standard to Apply the Successor Liability Doctrine

Littler on

The Puerto Rico Supreme Court (“PRSC”) recently issued an Opinion in the case of Roldán Flores v. M. Cuebas, 2018 TSPR 18, 199 D.P.R. __ (Feb. 6, 2018), in which it addressed again the requirements for applying the “successor...more

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