Making Sense of Successor Liability

50 Pages Posted: 10 Mar 2016  

Marie T. Reilly

Pennsylvania State University, Penn State Law

Date Written: 2003

Abstract

A firm that buys assets from another firm ordinarily does not acquire liability to the seller's creditors simply by buying its assets. This ordinary rule is subject to important exceptions. The buyer's consent triggers an exception. If a buyer agrees to assume the seller's liability to third parties, it is for that reason liable. This article considers a more controversial exception - successor liability. When a court decides that an asset acquirer should be treated as a "successor" to the transferor, it is liable for the transferor's debts as though it were the transferor.

Suggested Citation

Reilly, Marie T., Making Sense of Successor Liability (2003). Hofstra Law Review, Vol. 37, No. 745, 2003; Penn State Law Research Paper. Available at SSRN: https://ssrn.com/abstract=2744943

Marie T. Reilly (Contact Author)

Pennsylvania State University, Penn State Law ( email )

Lewis Katz Building
University Park, PA 16802
United States

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