COURT OF APPEALS HOLDING: 1) Employer’s protest of a determination which informed the employer it was a successor to a predecessor and therefore liable for all, or a share, of the predecessor’s rating account preserved the tax rate issue even though the determination did not specify a rate. 2) Amount of assets retained by seller must be considered in determination of percentage of assets transferred.
COURT OF APPEALS HOLDING: Where various business elements were transferred including some physical assets, disclosure of customers, gain of business from several customers of transferor, there was substantial evidence of a business transfer although the computation of the percentage of the rating account to be transferred was arbitrary.
COURT OF APPEALS HOLDING: When a chain store sells 3 of 126 stores and the purchaser continues to employ 90% of the seller’s former employees, there is a transfer of business, and that part of the seller’s rating account pertaining to the employees of the 3 stores must be transferred, pursuant to Section 22 of the Act, to the purchaser.
Valley Metal Co v MESC Digest no. 2.02 Section 22 Cite as: Valley Metal Co v MESC, 365 Mich 297 (1961). Appeal pending: No Claimant: N/A Employer: Valley Metal Products Company Docket no.: L57 2347 1040 Date of decision: December 28, 1961 View/download the full decision SUPREME COURT HOLDING: Transferred account means the rating account which… Read More »