ABC Company Manufactures a Contraption Meant to Enable a Rider

question 6

Multiple Choice

ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat.After a few months,ABC begins to hear of injuries when riders crash into water or boats.In hopes of escaping liability,the president of ABC Company decides to discontinue business and sell all assets to XYZ Company.The president of XYZ Company is excited to purchase the assets at a bargain price and help ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents.Which of the following is true in a majority of states applying the traditional successor liability rule?

• A) XYZ Company will not be held liable for the accidents so long as there is no contractual agreement by which it agrees to accept liability.
• B) XYZ Company will only be held liable if it continues to manufacture the same product lines as ABC.
• C) XYZ Company will only be held liable if it keeps the same tax number as ABC Company.
• D) XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.

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Definitions:

Universally Employed

A term that would describe practices or principles applied across all cultures, industries, or situations without exception.

Assertiveness

The quality of being self-assured and confident without being aggressive, in the communication of one's needs, desires, and rights.

Influence Tactic

Strategies or methods used by an individual to persuade or guide others' behaviors and decisions in a desired direction.

Assertiveness

The characteristic of possessing confidence and assertiveness, without exhibiting aggressiveness.