Legal Question in Business Law in Illinois

Business Law

I purchased a car from a local dealership and it came with a program called Auto4Life which covered the engine, tranny, powertrain etc afor as long as I owned the car. Now the business was sold 6-8 months after purchase and we were told that program is gone and will not be honored. My questions are this: 1) if a business buys a business does the new owner have to honor all present and past deals and 2) does the new owner have to honor the Auto4Life agreement. I have read all documents and nowhere does it state if the business is sold or bought out etc this contract is null and void. Please advise


Asked on 10/22/08, 7:46 pm

2 Answers from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Business Law

You will have to find out whether the new owner took over and assumed liabilities, if so, you have a claim. Additionally, you may have a claim against the prior owner for fraud or at least for the cost of the Auto4life agreement. You will ahve to do some homework to determine whether he was already trying to sell the business at the time you and he entered into the transaction. Good luck.

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Answered on 10/22/08, 7:53 pm
Adam S. Tracy Securities Compliance Group Ltd

Re: Business Law

Yes, the business should be responsible for the service program. That is, of course, assuming that the "sale" wasnt just a sale of the assets of the old company, in which case you would have to go after the old company. Please let me know if you have any follow-up questions. [email protected]

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Answered on 10/25/08, 6:13 pm


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