Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

تمرين 14

Terrell Redman, a senior vice president of Alligator Corporation, is evaluating a potential acquisition for the company. The entity he wishes to acquire has several divisions, two of which manufacture chemicals and industrial tools.
a. What risks does the acquisition present to Alligator Corporation under product liability law?
b. Are there ways to limit the company's exposure?
c. To the extent that product liability law will expose Alligator to liability for the acquired company's prior conduct, what steps must be taken at the time of the acquisition to ensure Alligator's ability to defend potential claims? [ See, e.g., Tolo v. Wexco , 993 F.2d 884 (9th Cir. 1993).]