CSHB 499(JUD): "An Act declaring legislative intent to reject the continuity of enterprise exception to the doctrine of successor liability adopted in Savage Arms, Inc. v. Western Auto Supply, 18 P.3d 49 (Alaska 2001) as it relates to products liability; providing that a successor corporation or other business entity that acquires assets of a predecessor corporation or other business entity is subject to liability for harm to persons or property caused by a defective product sold or otherwise distributed commercially by the predecessor only if the acquisition is accompanied by an agreement for the successor to assume the liability, results from a fraudulent conveyance to escape liability for the debts or liabilities of the predecessor, constitutes a consolidation or merger with the predecessor, or results in the successor's becoming a continuation of the predecessor; defining 'business entity' that acquires assets to include a sole proprietorship; and applying this Act to the sale, lease, exchange, or other disposition of assets by a corporation, a limited liability company, a partnership, a limited liability partnership, a limited partnership, a sole proprietorship, or other business entity that occurs before, on, or after the effective date of this Act."
00 CS FOR HOUSE BILL NO. 499(JUD) 01 "An Act declaring legislative intent to reject the continuity of enterprise exception to the 02 doctrine of successor liability adopted in Savage Arms, Inc. v. Western Auto Supply, 18 03 P.3d 49 (Alaska 2001) as it relates to products liability; providing that a successor 04 corporation or other business entity that acquires assets of a predecessor corporation or 05 other business entity is subject to liability for harm to persons or property caused by a 06 defective product sold or otherwise distributed commercially by the predecessor only if 07 the acquisition is accompanied by an agreement for the successor to assume the liability, 08 results from a fraudulent conveyance to escape liability for the debts or liabilities of the 09 predecessor, constitutes a consolidation or merger with the predecessor, or results in the 10 successor's becoming a continuation of the predecessor; defining 'business entity' that 11 acquires assets to include a sole proprietorship; and applying this Act to the sale, lease, 12 exchange, or other disposition of assets by a corporation, a limited liability company, a 13 partnership, a limited liability partnership, a limited partnership, a sole proprietorship,
01 or other business entity that occurs before, on, or after the effective date of this Act." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 LEGISLATIVE INTENT. The legislature declares that it is the intent of this bill to 06 reject the continuity of enterprise exception to the doctrine of successor liability adopted in 07 Savage Arms, Inc. v. Western Auto Supply, 18 P.3d 49 (Alaska 2001) as it relates to products 08 liability. 09 * Sec. 2. AS 09.68 is amended by adding a new section to read: 10 Sec. 09.68.070. Liability of successor for harm caused by defective 11 products. (a) Notwithstanding any other provision of law to the contrary, a successor 12 corporation or other business entity that acquires assets of a predecessor corporation or 13 other business entity is subject to liability for harm to persons or property caused by a 14 defective product sold or otherwise distributed commercially by the predecessor only 15 if the acquisition 16 (1) is accompanied by an agreement for the successor to assume the 17 liability; 18 (2) results from a fraudulent conveyance to escape liability for the 19 debts or liabilities of the predecessor; 20 (3) constitutes a consolidation or merger with the predecessor; or 21 (4) results in the successor's becoming a continuation of the 22 predecessor. 23 (b) In (a) of this section, "business entity" includes a sole proprietorship. 24 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 APPLICABILITY. This Act applies to the sale, lease, exchange, or other disposition 27 of assets by a corporation, a limited liability company, a partnership, a limited liability 28 partnership, a limited partnership, a sole proprietorship, or other business entity that occurs 29 before, on, or after the effective date of this Act.