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

UPDATED: Sep 12, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.


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 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.

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