Steve Smith/question

In article >, "Steve Smith"
> writes:

>Usually, when one outfit buys another, they assume both the assets and the
>liabilities as part of the deal. Now that Cingular has bought AT&T
>Wireless, for example, how would you like it if--as an AT&T customer--your
>pre-paid cell-phone plan wasn't honored by Cingular? Generating gobs of ill
>will drives customers away in droves. Preserving good will is just good
>business.

No, I understand why previous customers would be ****ed. I just didn't know
that the buyer also assumed the liabilities of the business. So, what happens
if those liabilities are mis-represented? Having to honor pre-paid stuff you
weren't aware of could ruin a business.

Eldred
--
http://www.umich.edu/~epickett
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US East

That's why we're a nation of laws...supposedly.

"EldredP" -OFF> wrote in message
...
> In article >, "Steve Smith"
> > writes:
>
> >Usually, when one outfit buys another, they assume both the assets and
the
> >liabilities as part of the deal. Now that Cingular has bought AT&T
> >Wireless, for example, how would you like it if--as an AT&T
customer--your
> >pre-paid cell-phone plan wasn't honored by Cingular? Generating gobs of
ill
> >will drives customers away in droves. Preserving good will is just good
> >business.
>
> No, I understand why previous customers would be ****ed. I just didn't
know
> that the buyer also assumed the liabilities of the business. So, what
happens
> if those liabilities are mis-represented? Having to honor pre-paid stuff
you
> weren't aware of could ruin a business.
>
> Eldred
> --
> http://www.umich.edu/~epickett
> Screamers League
> IICC League
> GPLRank -6.0 MoGPL rank +267.80
> Ch.Rank +52.58 MoC +741.71
> Hist. +82.34 MoH:na
> N2k3 rank: -1.047
> Slayer Spektera lvl 79 assassin
> Slayer Spectral_K lvl 44 Necro
> US East

PAM-OFF (EldredP) wrote in
:

> So are you saying that Skip himself should have paid the tuition for
> the racers involved? I can see why the new owner wouldn't want to
> give away lessons to people he hadn't collected from, though...
>
> Eldred

No, but the purchase price of the Barber name/school should have included
all previously tendered tuititions.
You don't give away anything...but the cost of buying the school should
also include the costs of new lessons
dave henrie

EldredP wrote:
> In article >, "Steve Smith"
> > writes:
>
>
>>Usually, when one outfit buys another, they assume both the assets and the
>>liabilities as part of the deal. Now that Cingular has bought AT&T
>>Wireless, for example, how would you like it if--as an AT&T customer--your
>>pre-paid cell-phone plan wasn't honored by Cingular? Generating gobs of ill
>>will drives customers away in droves. Preserving good will is just good
>>business.
>
>
> No, I understand why previous customers would be ****ed. I just didn't know
> that the buyer also assumed the liabilities of the business. So, what happens
> if those liabilities are mis-represented? Having to honor pre-paid stuff you
> weren't aware of could ruin a business.
>
> Eldred

A well known game company cratered that way (partially) a few years ago.
Microprose?

IIRC, They bought a German firm that later turned out to be in debt to a
bank for millions of dollars. Again IIRC, they backed out but lost
millions themselves on it.

- Matt