Am I liable for a business when the prior owner is in trouble for selling a licensed product illegally?

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Am I liable for a business when the prior owner is in trouble for selling a licensed product illegally?

I have taken over ownership but she is dragging her feet on signing the papers or accepting payment. Should I push this or wait?

Asked on September 12, 2011 under Business Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to be careful about the purchase of any business as a whole or portion of it. You need to have a written agreement specifying exactly what you are acquiring and make sure you do a bulk sales registration search to make sure that any assets being acquired do not have any liens recorded upon them with any secretary of state office in any state in this country.

You want to make sure in any purchase that you are solely purchasing the business assets and no liabilities. For example, a list of assets being acquired, the name of the business, accounts receivable and the like.

Yiu need to specifically exclude any liabilities such as any possible lawsuit from the sale. I suggest that you immediately contact a business attorney if you have not already to consult with over the possible purchase. If the seller is dragging her feet on the sale, there must be a reason for it.

Good luck.

 


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