If a Purchaser of All a Corporation's Assets Continues the Seller's

question 21

True/False

If a purchaser of all a corporation's assets continues the seller's product line, some courts impose upon the purchaser strict tort liability for defects in products previously manufactured by the seller corporation.

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Definitions:

Inspect Goods

The process of examining and verifying the quality, condition, and compliance of products with agreed-upon standards before acceptance.

Conforming Goods

Products that meet the specifications and standards mentioned in a contract of sale.

Perfect Tender Rule

A principle in sales law that allows a buyer to reject goods if they do not conform exactly to the terms of the contract, regardless of the significance of the nonconformity.

Substantial Impairment

A significant reduction or weakening in capacity, value, or function.