Under What Circumstances Will a Successor Corporation Be Held Liable

question 21

Essay

Under what circumstances will a successor corporation be held liable in a product liability action under the traditional successor liability rule?

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Operating Activity

Activities directly related to the day-to-day operations of a business, including sales of products or services, and expenses.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.