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Question
Champ Sports Corporation buys the assets of Delta Athletic Company. Champ continues Delta's business and retains the same personnel. Delta is a firm on paper only, with many unpaid debts. Is Champ liable for Delta's debts?Answer
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Fact Pattern 41-1
Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly faster computer chip. Adam buys Beta stock and tells his friend Cathy, who also buys Beta stock. When the new chip is announced three weeks later, Adam and Cathy sell their stock for a big profit.
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Fact Pattern 41-1
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