diff --git a/execute_cmd.h b/execute_cmd.h

--- a/execute_cmd.h

+++ b/execute_cmd.h

@@ -37,6 +37,9 @@ struct func_array_state

   };

 #endif

+/* Variables delared in execute_cmd.c, used by many other files */

+extern int executing_command_builtin;

+

 extern struct fd_bitmap *new_fd_bitmap __P((int));

 extern void dispose_fd_bitmap __P((struct fd_bitmap *));

 extern void close_fd_bitmap __P((struct fd_bitmap *));

diff --git a/subst.c b/subst.c

--- a/subst.c

+++ b/subst.c

@@ -10676,11 +10676,12 @@ expand_word_list_internal (list, eflags)

 		  tint = do_word_assignment (temp_list->word, 0);

 		  this_command_name = savecmd;

 		  /* Variable assignment errors in non-interactive shells

-		     running in Posix.2 mode cause the shell to exit. */

+		     running in Posix.2 mode cause the shell to exit, unless 

+		     they are being run by the `command' builtin. */

 		  if (tint == 0)

 		    {

 		      last_command_exit_value = EXECUTION_FAILURE;

-		      if (interactive_shell == 0 && posixly_correct)

+		      if (interactive_shell == 0 && posixly_correct && executing_command_builtin == 0)

 			exp_jump_to_top_level (FORCE_EOF);

 		      else

 			exp_jump_to_top_level (DISCARD);