I purchased a website/online business from flippa.com.

Asked about 3 years ago - Holbrook, NY

The site generates money from people clicking links and earning money basically. All money was paid through PayPal.

I owned it for one month, and all of a sudden the script and website began to not work any longer. The previous owner had someone make this website for them and ran it for a month, and then sold it. (Which is what people call flipping a website pretty much.)

Make a long story short, the members began to submit claims (including the original members that were through the first owner) and racked up $3,000 worth of chargebacks. Since PayPal's policy is that they do not settle any digital services, I am now shut down and cannot use PayPal until I pay them back.

My question is, am I actually liable for the previous owner's end? And can I actually do anything on my end?

Attorney answers (1)

  1. Richard C. Southard

    Pro

    Contributor Level 19

    Answered . What does the contract of sale say? Hopefully you hired an attorney to go over that contract with you to make sure your rights were protected from incidents such as this. If not, you can try suing the previous owner but usually the contract controls situations like this.

    Legal disclaimer: All answers are for information purposes only. Answering this question or any future questions... more

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