Abstract
Not uncommonly, a potential union‐free buyer targets for acquisition the unionized assets of a seller. For buyers not well versed in labor law, the transaction can seem relatively straightforward—buy the assets and leave the liabilities. The buyer may assume that as in many asset sales, few liabilities carry forward and contracts do not necessarily have to be assumed. Legal theories of successorship under the National Labor Relations Act can quickly confound a transaction. In addition to this complicated area of federal law, there are sometimes local laws that require purchasers to hire the employees of the seller. The use of a purchase transaction to rid a business of unionization quickly becomes anything but simple. Faulty assumptions about the law or missteps in its application can quickly result in unfair labor practice liability and failed expectations.
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