57. Scuba manufacturer designs and sells the best scuba gear on the market. All industry and governmental standards are
met, and there is no better technologically feasible design than that used by the manufacturer. There had been no previous
problems with the gear, but on one unfortunate day, the breathing apparatus on a unit malfunctioned resulting in a diver
needing medical care. Assuming recognition in the jurisdiction involved, which of the following is the best defense to a
lawsuit alleging a design defect brought by the diver?
United States – BUSPROG: – ANALYTIC
10–8g State-of-the-Art Defense
58. ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat. After a few months, ABC
begins to hear of injuries when riders crash into water or boats. In hopes of escaping liability, the president of ABC
Company decides to discontinue business and sell all assets to XYZ Company. The president of XYZ Company is excited
to purchase the assets at a bargain price and help ABC avoid liability based upon the assertion of the president of ABC
that XYZ cannot legally be held liable for the flying accidents. Which of the following is true in a majority of states
applying the traditional successor liability rule?
XYZ Company will not be held liable for the accidents so long as there is no contractual agreement by which
it agrees to accept liability.
XYZ Company will only be held liable if it continues to manufacture the same product lines as ABC.
XYZ Company will only be held liable if it keeps the same tax number as ABC Company.
XYZ Company will likely be held liable for the accidents based upon the transaction being entered into
wrongfully in order for ABC Company to escape successor liability.
United States – BUSPROG: – ANALYTIC
10–6a Successor Liability
59. A few years ago Bernice purchased some medication through her veterinarian for her aging pet iguana, Scales, who
had a skin disease. Scales died a few months after beginning the medication. At the time of the death, Bernice thought that
Scales had died of natural causes. She just read in the newspaper, however, that a number of reptilian type animals had
been harmed by the drug Scales ingested. Bernice immediately talked to her veterinarian who told her that while she now
believes the medication was harmful to Scales, it was manufactured by a number of different manufacturers, and there is
no way to determine the exact manufacturer of the medication given to Scales. Which of the following is Bernice’s best
chance at recovery?
Joint and several liability
10–1c Strict Liability in Tort
Blooms: Analysis