Reference no: EM131777804

Lori Lindee, in the course of her employment as a machine operator, was injured by a pipe and tube cutoff machine that had been manufactured and sold by Oldline Manufacturing Co. (O MFG) prior to 2006. In 2011, Mega Corp. purchased all of the production assets of O MFG., including the pipe and tube machine product line, and formed Oldline Machine Co. (O MACH) The assets purchased from O MFG were transferred to O MACH. O MACH continued to manufacture the same product lines as O MFG had. The shareholders of O MFG did not become shareholders, officers, or employees of Mega Corp or of O MACH, which was a wholly owned subsidiary of Mega Corp. Most of the employees of O MFG became employees of O MACH, however. There was no evidence that the transaction was undertaken for a fraudulent purpose, or that O MACH intended to confuse with the name similarity, nor did Mega or O MACH agree to assume O MFG liabilities. After the sale of assets, O MFG continued to exist, but it had no productive, operational assets. O MFG did continue to own the building in which the assets had been located, however, and leased the building to O MACH. Lori Lindee brought a product liability suit against Mega, O MFG and O MACH. What factors will the court consider in reaching its decision? Discuss fully.