Legal Question in Business Law in Tennessee

Re: Responsibility

As a general rule, the new owners of a business receive both the assets and the liabilities of the business they purchase. In some cases, liability for certain debts might be extinguished by statute or by requiring the seller to purchase insurance and indemnify the buyer. It sounds like you may have already complete the purchase and are not finding you have unforeseen liabilities.

Re: Responsibility

Probably. It depends on the nature of the purchase and the language of the purchase agreement. There are some other factors that may weigh into this determination, including the nature of the "problem" and any lapse in the business.

In order to get a more thorough answer, you need to take the documents evidencing the problem and the purchase to an attorney to go over them in detail. If you would like to discuss this situation with me, you can contact me.