This section contains the nature of the case and procedural background.

Brandt purchased a treadmill from Atlantic in 1981. It was designed, manufactured, and marketed by Tredex. Nissen entered into an asset purchase agreement with Tredex and as such purchased the name, patents, inventory and other assets of Tredex. Nissen also assumed some of Tredex’s liabilities, but the purchase contract specifically excluded assumption for liabilities from injuries arising from any product previously sold by Tredex. The contract contemplated that Tredex would continue for the next five years under a new name, AT Corporation. In 1986, more than five years later, Brandt was injured while using his unit. More than a year later AT Corporation was finally dissolved. Brandt (P) filed suit in 1988 seeking damages in negligence, strict liability, breach of express and implied warranties, and loss of consortium. P sued, Tredex, AT Corporation, Nissen, and Atlantic. Atlantic cross-claimed against D for indemnity. Nissen (D) filed a motion for summary judgment, and it was granted. P and Atlantic (D1) appealed. The trial court was reversed. D then appealed.

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