The economic loss rule emerged largely from the development of products liability jurisprudence. As courts abandoned the requirement for privity in contract, the doctrine of strict liability in warranty developed with the leading case ofHenningsen v. Bloomfield Motors, Inc.,32 N.J. 358, 161 A.2d 69 (1960). TheHenningsencourt held that an automobile manufacturer and a dealer were liable to the automobile purchaser's wife, who was driving the car when she was injured, on a theory of implied warranty of safety.See id.at 84. TheHenningsendecision was quickly followed by a flood of cases from other jurisdictions extending the implied warranty theory to many other products.SeeW. Page Keeton et al.,Prosser and Keeton on the Law of Torts 97, at 690 (5th ed.1984) [hereinafterProsser and Keeton]. The use of the implied warranty theory, however, generated numerous difficulties as courts struggled to apply contract rules to implied warranty cases. Courts proceeded on the assumption that contract rules must apply because these were "warranty" actions,

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additional questions

11. Assuming a company wishes to distribute money to its shareholders, is it better to

distribute dividends or to repurchase shares?

12. Is the price of futures the best estimate of the /$ exchange rate?

13. How could we obtain an indisputable discount rate? How should we calculate the beta

and the risk premium?

14. My company paid an extremely high price for the acquisition of another company; the

price was recommended by the valuation of an investment bank. We now have

financial problems. Is there any way to make that bank legally responsible for this

situation?

15. Which currency has to be used in an international acquisition in order to calculate the

flows?

16. Calculated betas provide different information if they are obtained by using daily,

weekly or monthly data. Which data is the most appropriate?

17. Does is make any sense to calculate betas against local indexes when a company has a

great part of its operations outside this local market? I have two examples: BBVA and

Santander.

18. Is it possible to make money in the stock market when the quotations are going

down? What is credit sale?

19. Which capital structure should we consider when calculating the WACC for a subsidiary

valuation: the one that is reasonable according to the risk of the subsidiary's business,

the average of the company or the one the subsidiary "tolerates/permits"?

20. Are there any ways to analyze and value seasonal businesses?