Legal Question in Business Law in Tennessee

customer seeking legal action

I use to own an auto repair buisness and when I did MY

technician did a transmission overhaul for a customer. we gave a one year unlimited mile warranty to the customer

and now I am out of business. I was Incorporated at the time. now that I am out of business can the customer still hold me to the warranty even though I was incorporated?

if so , what legal action can the customer take against me if any?


Asked on 10/27/05, 7:55 pm

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: customer seeking legal action

If your business was correctly incorporated, and you properly observed the corporate form during the life of the corporation, and the corporation gave the warranty, then in general terms yes, you personally are not liable for the warranty.

Now there are some items which could present you problems if the person pursued them. There are ways to "pierce the corporate veil" or go through the corporate protection to get to you. They are generally very expensive to pursue so most people do not go to the trouble unless a lot of money is at stake. Furthermore, when a company goes out of business there are things you must do to insure that you do not inadvertantly assume debts of the corporation. If you are worried about this it might be worth paying an attorney a consulting fee to look over your situation to make sure you do not have any loose ends.

Keep in mind that every situation is different. This is general information and may not fit your situation.

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Answered on 10/28/05, 10:27 am


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