DIYbanter - View Single Post

Leon[_7_]

On 1/15/2017 10:36 PM, wrote:
On Sun, 15 Jan 2017 21:55:36 -0600, Leon lcb11211@swbelldotnet
wrote:

On 1/15/2017 9:40 PM, Unquestionably Confused wrote:
On 1/15/2017 9:33 PM, Leon wrote:
On 1/15/2017 7:16 PM, Larry Blanchard wrote:
On Sun, 15 Jan 2017 17:48:10 -0600, Leon wrote:

It all has to do with the details of what they buy but unless the
company simply disappears some one is still going to be liable to
uphold
the warranty.

I don't think that's necessarily true, Leon. As someone said, it
depends
on the terms of the sale. I do remember reading about one or two
corporate sales where the seller kept the responsibility for old
warranties but I don't remember the details.

Absolutely and I'm sorry if I did not make that clear. Arbitrarily the
new owner cannot just decide to stop honoring the warranty, it will be
governed by the terms of the agreement/sale. The new owner may or may
not have to honor the new warranty depending on the agreement. That
will/was decided before the sale.

If their, the new owners, acquisition does not require them to honor the
warranty, I suspect that Sears will have to continue to honor the
warranties up to that point.

Sort of like a bank being sold and the banking company selling the bank
saying the new owners don't have to pay the former bank's depositors? LOL!

I suspect this did happen in the past, pre depression era time. But
there are regulations that prevent this and in the case of default, FDIC.

It's one thing when a company goes under, another thing entirely when a
company sells it's interests. The purchasing company also assumes, by
law, the liabilities and debts of that company and the warranty would be
one such debt or liability.

Yes, but the new owner does not necessarily have to assume the liability
on past sales, know as the warranty. But some one does, and that may be
a required acquisition of a third party insurance to cover that detail.

Not necessarily. In a banruptcy, the assets may be sold off without
selling the company itself and any liabilities killed with the
business. It's not only the debtors that get screwed.

The conversation is about the sale of Craftsman and the liabilities that
go with it, not bankruptcy.