Which of the following statements is NOT true regarding an Asset Purchase?

In the context of an Asset Purchase, the statement that all past court decisions are in favor of sellers regarding hidden liabilities is not accurate. Asset purchases allow buyers to selectively take on specific assets and liabilities, often leading to a smaller risk of inheriting hidden liabilities compared to a stock purchase. The legal framework often does not favor sellers universally; rather, it depends on the specific circumstances of each case and jurisdiction.

The other aspects of an Asset Purchase provide clarity on its characteristics. Buyers in such transactions typically choose which specific assets and liabilities they wish to acquire, thus minimizing their exposure to unwanted risks. Furthermore, sellers usually retain certain responsibilities after the sale, particularly those related to pre-existing obligations not covered in the purchase agreement. This selective acquisition process underlines the fundamental purpose behind Asset Purchases—allowing buyers to carefully manage and mitigate risks.