Inactive Vendors?

[SounDrive Pro Seller]

Yes, very aggravating. Machined plexi and custom LEDs I paid for and had shipped to DC to be incorporated with the enclosure that are still there.

Small claims court works wonders

Assuming he did get bought out, legally it's the new owners' responsibility although he's the one that screwed you over (as long as it's a LLC or Corporation, otherwise he's personally liable for breach of contract)

 

[denim 5,000+ posts]

Small claims court works wonders
Assuming he did get bought out, legally it's the new owners' responsibility although he's the one that screwed you over (as long as it's a LLC or Corporation, otherwise he's personally liable for breach of contract)

I had the number of the new owners, but they didn't answer the phone after numerous polite VM's. Now the number is dead.

 

[Louisiana_CRX 5,000+ posts]

Custom enclosure from 2 years ago that has never been delivered, only a long stream of excuses. Supposedly the company was bought out, but oh well I guess that's my fault.

I remember when he started making all those crazy excuses up...he was just buying time...

 

[Tallc 10+ year member]

Small claims court works wonders
Assuming he did get bought out, legally it's the new owners' responsibility although he's the one that screwed you over (as long as it's a LLC or Corporation, otherwise he's personally liable for breach of contract)

hmmmmmmmm , NOT TRUE

 

[SounDrive Pro Seller]

hmmmmmmmm , NOT TRUE

You must be a lawyer.

Given a LLC or Corporation status, the business is an entirely different entity from the owner and the owner is not liable, the business is.

 

[Tallc 10+ year member]

You must be a lawyer.
Given a LLC or Corporation status, the business is an entirely different entity from the owner and the owner is not liable, the business is.

no lawyer, but enough experience.... and have bought businesses, and its simple enough to write in your are not assuming any debt.. been there, done that... and I have 3 now, 2 of which are LLC

 

[SounDrive Pro Seller]

Now you're assuming something was done in the sale contract without seeing it.

 

[Tallc 10+ year member]

Now you're assuming something was done in the sale contract without seeing it.

not assuming anything, experience... but im not going to argue over the forum, was making a statement that a certain statement was not true... it all depends on the sale/buyout case, etc.... is it really that important to you? its still a fact, just because you buy a company, does not mean you MUST assume all debt from that company. but again, im not going to argue the issue here.. The original statement made was simply not true for all instances...

 

[adulbrich 5,000+ posts]

Well, our issue is up to paypal now

 

[los33]

Now you're assuming something was done in the sale contract without seeing it.

not assuming anything, experience... but im not going to argue over the forum, was making a statement that a certain statement was not true... it all depends on the sale/buyout case, etc.... is it really that important to you? its still a fact, just because you buy a company, does not mean you MUST assume all debt from that company. but again, im not going to argue the issue here.. The original statement made was simply not true for all instances...

Depends if the business was a total buy out/takeover.. Or if it was a name purchase which they gain possession of all business registration and all else will be terminated.

Even then each purchase is still solely the previous owners responsibility since none of the sales were done with contracts.

Contracts with each individual would then be either sold to other businesses to gain customers or it would be transfered if the new owner accepts responsibility.

Learn the rules of business before giving out advice or inaccurate answers.

Sent from my draconis using Tapatalk

 

[Tallc 10+ year member]

Depends if the business was a total buy out/takeover.. Or if it was a name purchase which they gain possession of all business registration and all else will be terminated.
Even then each purchase is still solely the previous owners responsibility since none of the sales were done with contracts.

Contracts with each individual would then be either sold to other businesses to gain customers or it would be transfered if the new owner accepts responsibility.

Learn the rules of business before giving out advice or inaccurate answers.

Sent from my draconis using Tapatalk

I gave out the CORRECT answer, and that answer was your STATEMENT was UNTRUE... so live with it.... don't care which way whatever situation turns out.. im referencing the original statement.. don't really care if you admit the statement was incorrect or not..

I will make it clear again...

NOT true, you MUST assume all liability and debt just because you sell a business... That's what good lawyers are for.. again, experience.. I don't need to be a lawyer to know what my lawyers have done... They are paid to work for you...... Have a good day....

 

[SounDrive Pro Seller]

Depends if the business was a total buy out/takeover.. Or if it was a name purchase which they gain possession of all business registration and all else will be terminated.
Even then each purchase is still solely the previous owners responsibility since none of the sales were done with contracts.

Contracts with each individual would then be either sold to other businesses to gain customers or it would be transfered if the new owner accepts responsibility.

Learn the rules of business before giving out advice or inaccurate answers.

Sent from my draconis using Tapatalk

The problem is your definition of a contract. A sale is very much a contract; the seller agrees to provide an item at a certain price and the buyer agrees to buy it. It's hard to enforce oral contracts vs written contracts (email, formal contract, etc) but they are still very much enforceable.

And yes, what you're calling is piercing the corporate veil. A limited liability business expense is not magically transferred to an individual unless they agree to take that liability in a contract or a court finds that they were careless with separating personal and business accounts. Selling the business does not automatically make them assume all debts of the company. The company and person are separate entities and debts will follow the company unless there's a contract made during the sale with other terms.

I've studied business law going on 2 years - business structure is very straightforward but as mentioned it all depends on the terms of the sale contract. But the default way things would happen is for everything to stay with the business. And again this only applies to an LLC or corporation which is its own entity. A self proprietorship or regular partnership is not its own entity and the owner retains liability

 

[Tallc 10+ year member]

now that's more in line with what should have been posted way up... We have never assumed liability , with exception of one time, and that was with a manufacturers rep. Mitsubishi, we basically purchase a small company with some issues, and we were already factory direct with mits. under our company, and in a very short summery, we were told in a not so direct way basically IF we wanted to maintain the line and relationship, it was in our best interest to pay off those outstanding invoices as part of the agreement to purchase.. We did, which also put us a little upside down on the line, then when things panned out, and starting to put us in the profit side of things with that particular line, they discontinued manufacturing TV's and projectors.. hmmmm, not such a great deal after all for us, but that's business...

an another note , a person I know who is pretty much in the same field, bought a company , and there was no assumption of liability, and not sure how they worked this out, or how it was actually in the sale, but the seller was supposed to pay off all balances to the distributors that were owed as part of the sale, this was on like a 30 day timeline, and I assume some funds from the sale were supposed to be used for this purpose, at any rate, my understanding is that the distributors were not all paid off, and something in the sale nullified the whole deal, and resulted in a no sale.. He did lose some money I believe from the initial purchase arrangements, but evidently other monies held In a escrow.. I simply think the seller did not actually have enough funds to pay all the distributors, and was thinking he would get all the money up front or something.. Anyway, I do not know the details of how that was actually set up, and I have never seen or been involved with a deal done that way.. Long story short, he started his company afterword from scratch, and surprisingly has done quite well... with the majority residual being in the alarm installation and monitoring...... I guess a pretty good income from the monitoring side from what told, if you want to deal with the licensing you need..