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Allenby Spares, Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel, Inc. from Allenby Spares and is involved in an accident due to the use of the faulty brake in his vehicle. Which of the following is true of this situation?
A) Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel.
B) TurboDiezel cannot be held strictly liable as the company is not the seller in this case.
C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake.
D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

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Answer: D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

Explanation:

Allen Spares can be held liable for the faulty brake under the SUPPLY CHAIN LIABILITY. Simply an academic theory formerly, Supply Chain liability is increasingly actionable in courts.

Under the doctrine of Supply Chain Liability, a Corporation can be held liable for damage caused by it's business partners based on the logic that it failed to prevent damage being caused to others when it had a CHANCE and DUTY to.

Courts then decide which cases a Corporation should rightly be held to be at fault for not exercising this duty.

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