Cengage Advantage Books: Foundations of the Legal Environment of Business 3rd Edition by Marianne Jennings

Exercise 14

Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices. The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca- Cola. Which best describes Coca-Cola's liability to customers who purchase the juice?
A) Coca-Cola is not liable because it did not know about the fungicide.
B) The Brazilian growers are not liable because there is no privity with the juice purchasers.
C) Coca-Cola is liable for a defect in its products.
D) Coca-Cola is liable under tort theory but not contract.