The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Question
Chapter 7, Problem 1IS
Summary Introduction
Case summary: The company R manufactures tire rims and sells it to the company S that installs them on cars. One set of rims was defective and was installed on the car by the company S without any inspection. Then, the car with the defective rims was sold to the company T that further sold the car to the person U. The car got involved in an accident due to the defective rims and the person U got injured.
To find: Liability of the company S.
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Rim Corporation makes tire rims that it sells to Superior Vehicles, Inc., which installs them on cars. One set ofrims is defective, which an inspection would reveal. Superior does not inspect the rims. The car with the defectiverims is sold to Town Auto Sales, which sells the car toUri. Soon, the car is in an accident caused by the defective rims, and Uri is injured. Is Superior Vehicles liable?Explain your answer. (See Strict Product Liability.)
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Chapter 7 Solutions
The Legal Environment of Business: Text and Cases
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