Ray fell from a defective ladder while working for his employer. Ray brought suit in strict tort

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Ray fell from a defective ladder while working for his employer. Ray brought suit in strict tort liability against the Alad Corporation (Alad II), which neither manufactured nor sold the ladder to Ray’s employer. Prior to the accident, Alad II succeeded to the business of the ladder’s manufacturer, the now-dissolved ‘‘Alad Corporation’’ (Alad I), through a purchase of Alad I’s assets for an adequate cash consideration. Alad II acquired Alad I’s plant, equipment, inventory, trade name, and goodwill, and continued to manufacture the same line of ladders under the ‘‘Alad’’ name, using the same equipment, designs, and personnel. In addition, Alad II solicited through the same sales representatives with no outward indication of any change in the ownership of the business. The parties had no agreement, however, concerning Alad II’s assumption of Alad I’s tort liabilities. Decision?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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