Legal Question in Business Law in Illinois

Warranty obligations

If a company goes out of business aren't they responsible for paying for repairs if the customer purchased extended warranties. I have been trying to catch up with Aronson furniture company. I paid $350 for extended warranty on a television.


Asked on 1/23/09, 1:52 pm

1 Answer from Attorneys
David K. Staub Staub Anderson LLC

Re: Warranty obligations

If a company goes out of business, they do have an obligation to meet their liabilities (including warranties) to the extent of their assets. Unfortunately, most companies that go out of business do not have enough assets to cover all of their liabilities.

I am not familiar with how Aronson's warranties were handled but in many cases you are actually buying a warranty from a third party, who still may be in business. The seller of the warranty just collects a commission. You should check your warranty carefully. Perhaps there is another party you can call.

David Staub, business attorney

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Answered on 1/23/09, 2:29 pm


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