Fact Pattern 41-1B (Questions B5-B7 apply)
DIY Fasteners Company decides to consolidate its operations with Evergrip Studs, Inc., to form Fit-Rite Bolts & Screws Inc.
-Refer to Fact Pattern 41-1B. Evergrip had rights in certain property. Af?ter the consolidation, Fit-Rite acquires the rights
A) automatically.
B) only after completing certain additional statutory procedures.
C) only if Evergrip's former shareholders expressly approve.
D) only if the acquisition is a specified result of the consolidation.

Question

Quizplus · Accepted Answer

In a consolidation, a new entity is created, which automatically acquires all of the assets and liabilities of the constituent corporations. Therefore, Fit-Rite would automatically acquire the rights to the property that were previously held by Evergrip. No additional statutory procedures or shareholder approval would be necessary for this transfer of property rights to occur.

Fact Pattern 41-1B (Questions B5-B7 Apply)