Lori Lindee, in the course of her employment as a machine operator, was injured
ID: 369993 • Letter: L
Question
Lori Lindee, in the course of her employment as a machine operator, was injured by a pipe and tube cutoff machine that had been manufactured and sold by Oldline Manufacturing Co. (O MFG) prior to 2006. In 2011, Mega Corp. purchased all of the production assets of O MFG., including the pipe and tube machine product line, and formed Oldline Machine Co. (O MACH) The assets purchased from O MFG were transferred to O MACH. O MACH continued to manufacture the same product lines as O MFG had. The shareholders of O MFG did not become shareholders, officers, or employees of Mega Corp or of O MACH, which was a wholly owned subsidiary of Mega Corp. Most of the employees of O MFG became employees of O MACH, however. There was no evidence that the transaction was undertaken for a fraudulent purpose, or that O MACH intended to confuse with the name similarity, nor did Mega or O MACH agree to assume O MFG liabilities. After the sale of assets, O MFG continued to exist, but it had no productive, operational assets. O MFG did continue to own the building in which the assets had been located, however, and leased the building to O MACH. Lori Lindee brought a product liability suit against Mega, O MFG and O MACH. What factors will the court consider in reaching its decision? Discuss fully.
Explanation / Answer
Answer -
In this case there are two companies "O-MFG" and "O-MACH".
O-MFG was the original company and he sold all its product line to O-MACH.
O-MACH is making similar product as O MFG was making earlier.O-MACH is at the same location got on lease from O-MFG.
Before this transition from O-MFG to O-MACH was happened, Lori Lindee was injured at pipe and tube cut off machine. After this transition Lori Lindee brought a suit for product liability against O-MFG and O-MACH.
Product Liability Rule - Product Liability rule states that the liability of defect/ damages is being liable with the product manufacture or product seller or product distributor or product retailer, who ever is involved in making/selling/marketing of dangerous product which can have impact on various people. Thsi law helps to the injured person to get the clarity and can file their legal case against them.
The product liability rule is to prevent making/selling of defective products which can have injury impacts on various people. There are three types of defective products
So the factor court will consider following factors before reaching to the dicision are as below
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