Legal Question in Business Law in New York
Can one business buy another and not be responsible for their liabilities? I had a money back guarantee on an unused 100,000 mile warranty that cost $1600.00 and Huntington Toyota does not want to honor the certificate even though the business is run by the same individuals at the same address, but changed its name from Stevens Toyota, probably to get out of its liablities, "extracare contracts " which they forced upon their customers.
2 Answers from Attorneys
Yes, Huntington can buy Stevens without assuming Stevens' liabilities. A good attorney might be able to prove that Huntington Toyota should be held liable via "de facto merger" or as a "successor in interest."
However, you would spend at least a couple of thousands dollars just to file and serve the complaint. So the practical answer is there's really nothing you can afford to do.
I wish I had better news to report.
Before you file and serve a complaint, file a claim with the NYS Attorney General, consumer fraud division. In the past I have had clients that received some degree of satisfaction.
Mike.
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