If a purchaser of all of a corporation's assets continues the seller's product line, some courts impose upon the purchaser strict tort liability for defects in products previously manufactured by the seller corporation.

Question

Quizplus · Accepted Answer

This is known as the "product line" exception to the general rule of successor liability, which allows for the imposition of strict liability on the purchaser in certain circumstances. This exception has been recognized by some courts in order to protect consumers and encourage corporate responsibility.

If a Purchaser of All of a Corporation's Assets Continues