Can a company that gives a lifetime warranty declare bankruptcy and sell to a company that then does no have to honor the warranty?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company that gives a lifetime warranty declare bankruptcy and sell to a company that then does no have to honor the warranty?
The warranty was for new windows.
Asked on November 12, 2014 under Business Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
The short answer is yes: depending on how the sale was conducted and whether the purchaser took on the obligations of the seller, or only acquired the assets, it could easily be the case that the first company declares bankruptcy or otherwise goes out of business and the second company acquires assets, the name, etc. of the first but not the obligation to honor the warranty. That doesn't mean it has to happen that way--there are also transactions where the acquirer does take over the warranty obligations--but it certainly is common for the successor or acquiring company to not be bound by the warranties. That is the problem with "lifetime" warranties--really, it's not just the lifetime of the product, but also the lifetime of the company issuing it that is critical.
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.