Successor Liability Business Acquisition

Definition: The doctrine imposing liability on the buyer of a business for the seller's pre-existing debts and obligations under certain circumstances, even in an asset purchase where the buyer did not expressly assume the liabilities.

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Successor Liability in Florida Business Acquisitions

FL acquisition successor liability: consider: product liability, employment claims, tax (Section 212.10: buyer liable for seller’s unpaid sales tax), environmental, and contractual. Bulk sales: FL repealed UCC Article 6 (2001); UFTA (Chapter 726) still applies. Structure: asset purchase (not stock), selected liabilities, indemnification, escrow, RWI, and tax clearance (Section 212.10). Due diligence: seller’s creditors, liabilities, and tax status.

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Bulk Sales

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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC

Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney-client relationship with Barnes Walker, Goethe, Shea & Robinson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.

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