You have been invited to sit in on the weekly Management Team meeting in which the top managers discuss current issues relevant to the Company.

One of the managers reports that a customer was allegedly injured last week at the Companys Pasadena store by a large tub of organic wheat germ falling off a shelf. The store managers report indicates that the customer was in the storage area in the back of the store. This area is accessible only by walking through doors marked Employees Only. The container that fell on top of the customer was shelved by an employee. The customer fell to the ground when hit by the tub and was apparently dazed. She was, however, able to leave on her own and told the store manager on her way out of the store that the Company would be hearing from her lawyer.

The Management Team decides to set up a meeting with the Companys legal counsel next week to determine if it has any legal liability to the customer. The CEO recalls that when you interviewed for the position of Management Trainee you mentioned that you had taken a business law course. The CEO says to you, I know youre not a lawyer, but since youve taken a business law class more recently than any of the rest of us, please draft a short memo explaining what kind of liability we might be facing so that when we meet with our lawyer we have a sense of whats going on

Can you make an argument that the Company may not be liablebase on California law)