Legal Question in Business Law in Texas

Re: lifetime warrantee not honored by purchasers of issuing company

Unfortunately it is quite possible to purchase only the assets. A good reason to deal only with the biggest companies. If you can find any assets of the selling entity perhaps you could go against them. There might be another angle, however, if the new company made any advertising claims that would lead you to believe they would honor the old warranties.

Joe Naylor

Re: lifetime warrantee not honored by purchasers of issuing company

Your Question: Is it possible to purchase a company and not assume all their assets and liabilities such as the lifetime warranty?

ANSWER: Yes. Many, if not most, small businesses which sell to another, sell only the assets of the business. Often this also includes the right to do future business under the old business name. This arrangement frequently is referred to as an "assets only" sale. The reason is obvious -- a new owner does not desire to be responsible for the previous owners debts.

What you need to do: Find out what entity the old business was. If it and its owner are totally broke, you probably are out of luck. On the other hand, there is the possibility that the old business still has assets even though the owner may live elsewhere. Check the property tax rolls for the old owner. Who knows, you may come up with something good to go after.