Is a warranty still valid if the company that issued it is sold?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is a warranty still valid if the company that issued it is sold?
A well known TX pool company gets into trouble,so the owner sells out to a partner. The company keeps the same name but doesn’t advise the customer base of the sell and continues to work like nothing is different. Is the existing pool company still responsible for upholding the warranties issued by the company? Does the “new” pool company assume all of the customer’s, previous to sell and after, liabilities and warranty issues?
Asked on November 29, 2010 under General Practice, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There is no simple answer: it depends in large part on how the sale occured and whether the same corporate entity still exists. Companies can be sold in two basic ways: either the corporation itself (or the LLC) can be sold, in which case the buyer takes it subject to all contracts, agreements, and obligations; or the assets are sold but not the corporate entity, in which case the buyer only takes those obligations which he, she, or it specifically assumes (or takes on). So it may be the case that the new company has to honor the old company's warranties, but it's not a given; it depends on the circumstances.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.