Section 20 Mergers

• Library: Bus Trans 2005

In a merger, the surviving corporation, by operation of law, assumes all the liabilities and obligations of the constituent corporations, including unknown, undisclosed, and contingent liabilities. Potential liabilities may include substantial warranty claims that may be made in the future. As a result, the surviving corporation must assure itself that it has knowledge of all of the merged corporation’s existing and potential liabilities of any nature through careful review of all corporate records. The...