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In an Output Contract, the Seller Can Operate a Factory

question 1

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In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and insist that the buyer take all of the output when that buyer had operated only eight hours a day at the time the contract was made and the buyer had knowledge only of the eight-hour-a-day operating schedule.

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Definitions:

Doctrine of Strict Liability

A legal principle that holds a party responsible for damages or loss, regardless of fault, in specific circumstances.

Mere Bystander

An individual who is present at an event or incident but does not take any part in it.

Original Purchaser

The first party to buy a product or service directly from the supplier or manufacturer.

Warnings

Notices given to consumers or users about the potential risks or dangers associated with a product or service to mitigate liability.

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