Rick Doyle bought an aluminum ladder from Home Depot in 2003. Three years later, he fell from the ladder when
Rick Doyle bought an aluminum ladder from Home Depot in 2003. Three years later, he fell from the ladder when one of its legs collapsed. Doyle subsequently sued the manufacturer of the ladder, Werner Co., as well as New Werner Co. (the entity that had purchased the assets of Werner Co. during its bankruptcy, which occurred after the ladder was manufactured), and Home Depot, alleging that the defendants had negligently designed, manufactured, and sold the defective ladder without adequate warnings and breached certain warranties related to the sale. New Werner had agreed to indemnify Home Depot if Home Depot was required to pay any amount on a product liability claim related to a Werner product.
a. What facts will a court review to determine whether New Werner has successor liability as the purchaser of the assets of Werner Co.?
b. Under those facts, will New Werner be liable as a successor?
c. Does the indemnity agreement between New Werner and Home Depot impose any liability on New Werner for claims against Werner Co.?
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