Opinion ID: 1400724
Heading Depth: 3
Heading Rank: 1

Heading: Galindo

Text: The principal case on which Jaramillo relies to argue that Weyerhaeuser is an ordinary seller of used FFGs is Galindo v. Precision American Corp., 754 F.2d 1212 (5th Cir.1985). Applying Texas law, the Fifth Circuit rejected the view of the district court in that case that `getting rid of the depreciated equipment used for production of the goods and services that constitute the business of the seller' can never constitute a business in which the seller is engaged. Id. at 1219 (quoting district court). In dictum, the court opined that a business that sells its obsolete assets [c]learly would not be exempt from strict products liability if: (1) the company ha[d] a policy of purchasing new equipment ... [for example,] every five years; (2) the company ha[d] a division or department devoted to selling the used equipment; (3) the department advertise[d] the availability of equipment on a widespread basis; and (4) the company realize[d] substantial revenues from this activity. Id. The court concluded that there may well exist circumstances in which, because of the number of sales or the extent of sales activities, a seller of depreciated equipment would fit squarely within the rationale for imposition of strict liability. Id. at 1220-21.