Reference no: EM131804640

Enstrom purchased an aircraft from the Interceptor Corporation. When the aircraft crashed due to a design defect, Enstrom sued Interceptor. However, when Enstrom found out that Interceptor’s assets Page 702had been purchased by the Interceptor Company (IC), it asked the court to join IC as a new defendant. IC argued that it was a different corporation involved in a different business. IC further argued that it had simply purchased the assets of Interceptor and was now involved in selling those assets, like the aircraft, to other buyers, like Enstrom. IC concluded that it was therefore not liable to Enstrom. Was IC correct? Why or why not? [See: R.J. Enstrom Corporation v. Interceptor Corporation, 555 F.2d 277 (10th Cir.).]