If company A sold its business to company B, which company, A or B is responsible for "service guarantees" made by company A in the event the contract of sale does not address this matter? Company B will not take responsibility for the cost of labor Guaranteed by company A and is billing clients. Company A no longer exists, and the client is Sueing company B. The companies are in New Jersey. Please advise.
Obligations are between the customer and A. That does not change as long as A and B remain separated entities (i.e. there is no merger) or there is some kind of contract that alters it.
There are lots of variations. Did A separate those operations into C (at some point the customer should have agreed to that) and then sold C to B? Did A just "sell" the existing contracts to B (again the customer should have agreed, and then B is the one with the obligation of the customer agreed)?
For some forms of company, B as an owner could no on the hook for A debts, if it goes into bankruptcy, but that would not depend on the legal firm if the company and would have equally affected the previous owner equally.