Practice question
A sole proprietor sells the recruitment business, including its desks, records and trade name. The buyer starts recruiting under the seller's unexpired license, arguing that a sale of all business assets necessarily carries every permit. Which assessment is correct?
- The buyer acquires the license by paying the price.
- Transfer of desks transfers regulatory authority.
- The trade name is the license holder regardless of identity.
- The private sale does not transfer the recruitment license to the buyer.
- Only the workers' consent is needed to validate the assignment.
Legal references
- 2023 DMW landbased Rules, Department Circular 01 s.2023, specified section: https://dmw.gov.ph/archives/v1/resources/dsms/DMW/ISN-EXT/2023/DMW-DC-01-2023.pdf — Sections 25–33; Labor Code Articles 18,26,29,34–35, official DOLE text: https://dole.gov.ph/book-1-pre-employment/ — Article 29.
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