I guess that’s why lawyers are involved in buy outs. Whether you assume liabilities or not is a matter of the agreement. Likely just assets or names use only. What would B&D need with a contract plant making red tools when all B&D has to do is change the color of the plastic. Home Town Sears stores may be different but just a franchise.
Most new Craftsman tools still have a lifetime warranty. I imagine that the old ones do too. It seems like a small additional cost to cover old tools. I’ve had my Craftsman tools since the 1970s, and never had to return any of them.
You’re arguing about trade names?
I find that to be about 50-yrs out of date. All companies revive and kill trade names on a regular basis.