Becker v. IRM Corp., 698 P.2d 116 (1985)

Citation: Becker v. IRM Corp., 698 P.2d 116 (1985)
Parent Document: Becker v. IRM Corp., 698 P.2d 116 (1985)
Jurisdiction: California (state)
Effective Date: 1985-04-29
Original Source: https://www.courtlistener.com/opinion/1172788/becker-v-irm-corp/ ↗

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The weakness of the majority’s analysis of the relevant stream of commerce is revealed by consideration of its basis for concluding that “a continuing business relationship is not essential to imposition of strict liability.” It relies upon Ray v. Alad Corp. (1977) 19 Cal.3d 22 [136 Cal.Rptr. 574, 560 P.2d 3], for the proposition that unavailability of a manufacturer militates in favor of the imposition of liability on “persons engaged in the enterprise who can spread the cost of compensation.” (See ante, p. 466.) In Alad, we held that a corporation which had acquired all assets of the manufacturer of the defective product and which continued to run the business in a manner almost identical to its original form, could be held strictly liable for defects in a product manufactured by the predecessor corporation. “By taking over and continuing the established business of producing and distributing Alad ladders, Alad II became ‘an integral part of the overall producing and marketing enterprise that should bear the cost of injuries resulting from defective products’ (Vandermark v. Ford Motor Co., supra, 61 Cal.2d 256, 262).” (Ray v. Alad Corp., supra, 19 Cal.3d at p. 34.) Under those narrow circumstances, we held the successor could be held liable.

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