Dillard Department Stores, Inc. v. Associated Merchandising Corp
In Dillard Department Stores, Inc. v. Associated Merchandising Corp., 162 Ariz. 294, 296, 782 P.2d 1187, 1189 (App. 1989), the appellant argued a product broker was strictly liable for a defective product because the broker was in the chain of distribution.
The Court considered various factors, including that the broker: never owned or possessed the product; never exercised control over the product; "provided a service to retailers, rather than specific goods to the public"; did not directly benefit from the transaction at issue; would not have been responsible for a product lost or damaged in transit; and did not create consumer reliance in the product. Dillard Dep't Stores, 162 Ariz. at 298, 782 P.2d at 1191.
The Court concluded the broker lacked the "'participatory connection'" required to give rise to strict liability as a seller. Id.