ABW Broadcasters, Inc. v. Billings Advertising Co.

Hammond, J., delivered the opinion of the Court. Radio Station WABW in Annapolis was sold and transferred on May 12, 1960, by its then owner to the appellant, ABW Broadcasters, Inc. The original owner previously had entered into four written contracts with Billings Advertising Company, Inc., whereby it engaged the advertising services of Billings (which is engaged in the business of designing, producing ¹⁷² and placing on display advertising signs and cards in passenger vehicles throughout the United States) to promote the business and goodwill of WABW by displays on buses operating in Anne Arundel County. Under the terms of the contracts payment for the advertising services was to be partly in cash at the rate of so much per month and partly by making radio advertising time available to Billings. The purchasing owner, ABW Broadcasters, gave notice to creditors under the Sales in Bulk Act (Code (1957), Art. 83, Secs. 97-101, since repealed by Acts of 1963, Ch. 538).

Its letter of April 30, 1960, advised Billings that it was due $343.00 through April 30, and requested verification. Billings replied that the amount due was correctly stated, and added: “We also wish to advise that during the period of our agreement, air time has been accumulating for our use as spot announcements.” After the transfer, Billings continued to advertise Station WABW as called for by the contracts. When ABW fell behind in its payments and finally in writing cancelled the contracts, suit was filed by Billings, showing the cash amounts due under each contract (including the cash value as estimated by Billings of the air time due but not provided), the amounts paid on account, and the balance due. Judge Duckett found an assumption of the contracts by ABW Broadcasters and liability under them (but less than