Query: Why is it important to look into legal liabilities when buying a business?
Context: It is crucial to research and understand any potential legal liabilities associated with the business you are considering buying. This includes checking if the business is involved in any ongoing litigation, as purchasing a business in the middle of a lawsuit can make you party to the legal proceedings. Additionally, it is important to investigate any liens or judgments against the company or its executives that may have financial and legal implications. Proper due diligence in this area helps mitigate the risk of inheriting legal liabilities upon acquiring the business.