Legal Question in Business Law in Mississippi

I purchased a business 4 months ago that had been open 3 weeks. Two months later an old employee came to me and told me that all of the equipment at the business was owned by him and he wants it back. The old owner refused to cooperate; but keeps telling me that he bought the equipment from the employee. Should I return the equipment, which is needed for me running my business or should I aske for receipts? The employee states that he was never paid for the equipment and wants his equipment back to open another business.

Asked on 1/16/11, 9:42 am

1 Answer from Attorneys

Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I think you need to read the contract of sale for the business, especially the representations and warranties section, to see how this issue is dealt with. If it's not in there, then you need to see an attorney before taking any action. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 1/26/11, 8:36 am

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