You have a business called ABC Distributions. Your business acts as the “middle man” between businesses that manufacture furniture and retail furniture stores. A customer buys a bunk bed from one of the retailers with whom you work. Unfortunately, that bunk bed has a structural flaw that allows the bed to collapse while people are sleeping in it, resulting in serious injury. When the customer sues, he names you as a defendant. Since the manufacturer sent the bed to you for distribution, it has filed bankruptcy and has no assets. The retail store, on the other hand, has a disclaimer in its contract with all buyers that offers a limited recovery of only $5,000 for any product liability claim. The plaintiff, however, wants to recover $500,000 and has turned his attention to you and your company.
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Is it ethical to recover from a distributor, when the distributor neither manufactured a product nor sold it to the end user?
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