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Bord Inc. manufactured motor cars. Its new model, the Panto, was produced with a new design for the fuel tank. The company's market research had

Bord Inc. manufactured motor cars. Its new model, the Panto, was produced with a new design for the fuel tank. The company's market research had showed it was desirable to provide a larger boot with sufficient room for two sets of golf clubs. The Panto therefore was designed with a fuel tank mounted behind the rear axle rather than on top of it. Mickey purchased a new Panto from Slapp-Happy Motors after test driving and inspecting it for one hour. Twelve months later he was involved in a collision in which his car was hit from behind after he stopped suddenly. Because of the position of the fuel tank, it split open on impact, spilling fuel onto the road which then exploded. Minnie, a passenger of Mickey's was killed. Expert evidence shows that the explosion would not have occurred had the fuel tank been mounted above the rear axle.

Required:

(a) discuss the potential liability of Bord Inc.

(b) discuss the way that the law in this area has developed.

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