Purchase of Assets. Paradise Pools, Inc. (PPI) entered into a contract with Vittorio, LLP, to build.

 

Purchase
of Assets. Paradise Pools, Inc. (PPI) entered into a contract with Vittorio,
LLP, to build a pool as part of a hotel being developed by Takahashi
Development. PPI built the pool, but Vittorio, the general contractor,
defaulted on other parts of the project. Takahashi completed the construction.
Litigation followed, and Takahashi was awarded $18,656 against PPI. Meanwhile,
Paradise Corp. (PC) was incorporated with the same management as PPI, but
different shareholders. PC acquired PPI’s assets, without assuming its
liabilities, and soon became known as “Paradise Pools and Spas.” Takahashi
sought to obtain a writ of garnishment against PC to enforce the judgment
against PPI. Is PC liable for PPI’s obligation to Takahashi? Why or why not?
(See Purchase of Assets.)