Business 8th Edition by Marianne Jennings

Exercise 18

Johnson Johnson, Procter Gamble, and Eastman Kodak have joined together to form a joint venture in order to develop security tags for their products sold in drug and grocery stores. Shoplifting thefts of drugstore items are estimated to be $16 billion per year. The manufacturers point to Pampers, Tylenol, and Preparation H as the most frequently stolen items from stores.
The companies will jointly fund the development of security tags designed to set off alarms at store doors, much as the tags on clothing do today.
What is the liability of the companies as joint venturers on this project?