H
hoss20
Guest
What is the name of your state? TX
My brother and his partner have acquired a branch of another company's business (Company 1) and it is now their own (Company 2). In the agreement, one of the conditions was that all service issues originating from sales by the previous owners (Company 1) were to be the responsibility of that company (Company 1).
It is now very possible that my brother's company (Company 2)is going to be sued due to the actions of the previous owners (Company 1). Company 1 received all monies from this sale.
Company 1 is still in business and is the manufacturer for my brother's company (Company 2). To keep continuity with dealers, the name of the branch of the company acquired (ABC Company) was kept the same.
My question is: is there any way for my brother's company (Company 2) to escape from this lawsuit? ABC Company will be the company named in the lawsuit and since my brother and his partner own that company, is that all that matters? Or is it possible that they protected themselves with the condition mentioned earlier and the owners of Company 1 be the ones responsible?
I realize this question may be unclear and I apologize, but I will be joining my brother's business and we are both concerned about a lawsuit this early in the development of the company. It is highly unlikely that if my brother's company has to answer for this lawsuit that it will be able to continue.
Thank you very much to whomever replies.
My brother and his partner have acquired a branch of another company's business (Company 1) and it is now their own (Company 2). In the agreement, one of the conditions was that all service issues originating from sales by the previous owners (Company 1) were to be the responsibility of that company (Company 1).
It is now very possible that my brother's company (Company 2)is going to be sued due to the actions of the previous owners (Company 1). Company 1 received all monies from this sale.
Company 1 is still in business and is the manufacturer for my brother's company (Company 2). To keep continuity with dealers, the name of the branch of the company acquired (ABC Company) was kept the same.
My question is: is there any way for my brother's company (Company 2) to escape from this lawsuit? ABC Company will be the company named in the lawsuit and since my brother and his partner own that company, is that all that matters? Or is it possible that they protected themselves with the condition mentioned earlier and the owners of Company 1 be the ones responsible?
I realize this question may be unclear and I apologize, but I will be joining my brother's business and we are both concerned about a lawsuit this early in the development of the company. It is highly unlikely that if my brother's company has to answer for this lawsuit that it will be able to continue.
Thank you very much to whomever replies.