Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 2

Perfect Products manufactures balloons, which are then bought and resold by wholesale novelty distributors. Mego Corp. manufactures a doll called ''Bubble Yum Baby.'' A balloon is inserted in the doll's mouth with a mouthpiece, and the doll's arm is pumped to inflate the balloon, simulating the blowing of a bubble. Mego Corp. used Perfect Products balloons in the dolls, bought through independent distributors. The plaintiff's infant daughter died after swallowing a balloon removed from the doll. Is Perfect Products liable to plaintiff under a theory of strict liability? Explain.