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Ethicon, Inc., a pharmaceutical company, entered into an agreement with UPS Supply Chain Solutions, Inc., to transport pharmaceuticals. Under a contract with UPS’s subsidiary, Worldwide Dedicated Services, Inc., International Management Services Co. provided the drivers. During the transport of a shipment from Ethicon’s facility in Texas to buyers “F.O.B. Tennessee,” one of the trucks collided with a concrete barrier near Little Rock, Arkansas, and caught fire, damaging the goods. Who was liable for the loss? Why?

Operation Management, Management Studies

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