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The Claremont Cyanamid Company (“CCC”) specializes in a highly-carcinogenic chemical called “acrylon,” used in computer-chip manufacturing. The Orange Company calls CCC and orders 7 metric tons of acrylon for use in computer chips being manufactured for its recently-announced line of IPlanes, self-propelled aircraft favored by the rich and famous for travel. It’s already July, and Orange has announced that the iPlane line will be for sale before the holidays. One of the characteristics of acrylon, though, is that it is highly flammable at very low temperatures–around 30 degrees–which means it must be transported in special refrigerated rail cars. CCC rents its train cars from the Pomona Pacific Railroad (“PPR”), a well-respected railway operator in business for approximately 150 years. CCC called PPR and told it that on Thursday, it would deliver 7 metric tons to the railyard for loading and shipping to Orange. On the day of the delivery (Thursday), specialized trucks containing 7 metric tons of acrylon appeared at the railyard and prepared for loading . Unbeknownst to either CCC or PPR, one of the three railcars provided for the purpose had a defective nozzle. The nozzle was particularly likely to give way under stress or pressure. The acrylon was loaded on to the train without incident, and the train started on its way to Orange. About halfway between Claremont and Orange was a large farm bisected by the railroad tracks, owned by Farmer Bob. Farmer Bob had woken up early that day and decided it would be an excellent day to move his herd of cows to a different part of the pasture. He was doing so as the train approached. Suddenly, an inadvertent train whistle blew, frightening the cows and causing them to stampede toward the track. Unnerved by the angry horde of cows rushing at the train tracks, the train engineer hit the emergency brakes and slowed the train to a stop without injuring any of the cows (NOTE: No animals were injured in the course of this hypothetical.) Unfortunately, the pressure of the sudden stoppage caused the nozzle to fail, allowing the 75 degree outside air into the compartment. An explosion resulted that destroyed all three railcars, and injured seven railroad employees. Between the time it took to replace the acrylon (delayed further by the weeks it required to repair the track), Orange missed its deadline to market iPlanes for the holiday season at a loss of billions in potential revenue. Analyze all potential causes of action, liability, and defenses for the following parties: 1) CCC 2) PPR 3) Farmer Bob

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