Legal Question on Gun Lawsuits.

[Meiji_man]

Let's say that the Gun Lawsuits succeed and several Gun companies go out of business.
North American Arms being one of them. Thier assets are auctioned off and I go down to the auction and by the whole thing. Locks, Stocks, and Barrrels. I also buy the blueprints.
One business week later I open up a new gun company. New name, new owners, new Fed Tax number.
Would I be libel in anyway for the actions of the previous company? What ways could I protect my self from falling under the same suit as the previous company?
And what if I did this with a tobacco company?

 

[Futo Inu]

Yes, you can purchase the assets of a company without acquiring its liabilities. The written agreement to purchase the assets (which can include intellectual property like trade names even) will contain the entire agreement and it will of course not mention any responsible for the torts, etc., of the seller; only the responsibility to pay the money. If you buy from a court-appointed receiver, bankruptcy trustee, or other official corporate liquidator, you will be "covered" - no liablity for actions taken by the seller (NAA or whoever) PRIOR TO the sale. Of course you may get sued the next month for NEW things the plaintiffs claim you've done SINCE the purchase, which may be the same acts that led to NAA's liability in the first place (i.e. selling allegedly defective firearms, etc.)

 

[Seronac]

If you, by chance, buy NAA, save me one of those sweet little Black Widows with both size cylinders - way cool!

 

[bookkie]

Just one thing to add to Futo's post... in any transaction such as this make sure that what you are buying is the assets only... Do not purchase the company stock to own it. By purchaseing the stock you are in effect purchase the company with all of the liabilities attached.



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Richard

The debate is not about guns,
but rather who has the ultimate power to rule,
the People or Government.
RKBA!