logo-education
0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

ASA agree it is possible to trade on reputation of defunct company

10 January 2014

The ASA has rejected a complaint that Abacus Lighting Ltd was misleading as to their reputation and history when claims made on their website - to ‘extensive experience and a proven track record’ and  a ‘hard earned reputation’ dating back ‘over 55 years’  - related to previous companies that had gone into administration.

The original company in fact went into administration for one minute before acquisition and a name change had occurred simultaneously.  Abacus could demonstrate  it had purchased the trading assets, goodwill, intellectual property rights and shares of the defunct organisation.

It was particularly relevant that Abacus had taken on the debts and liabilities and were honouring the guarantees of the previous company; therefore companies should carefully consider what exactly they are signing up for in an asset purchase.  If they wish to rely on the purchased company’s reputation and trading history in future advertising it may not be sufficient in the eyes of the ASA to merely have purchased the goodwill, they will need to be seen to be maintaining it too.

related opinions

School uniform under media spotlight

The new academic year has started with controversy over school uniform. Last week, a government inquiry heard evidence that costs for parents are being exacerbated by compulsory branded uniform, including clothing with school logos, and operating contractual arrangements for the supply of these items with single retailers.

View blog

Education Secretary confirms DfE 'backing' for exclusions

Education Secretary, Gavin Williamson, has confirmed that head teachers who take “the decision to either suspend or expel a pupil because they need to do it in order to be able to enforce proper and full discipline in their school, and making sure that they're protecting the whole interests of the school, will always have my backing".

View blog

Welcome news for sixth form colleges looking to academise

The Government has accepted calls from sixth form colleges to reopen the option to become academies.

View blog

RSE guidance issued - but do teachers feel ready?

In our previous blog we updated you on the new requirements to teach relationships, health and sex education (elements of which are phase specific) which will become mandatory in September 2020.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up