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The Economic Loss Rule

Picture this: You just purchased a brand-new toaster oven. It did not come with a warranty, but you have heard great things about this brand and know several people who own the same model, so you trust it will work just fine. The toaster oven works great for a while, but one day, it explodes. The toaster did not hurt anyone or damage anything else, but you spent a lot of money on it! However, you probably cannot sue the manufacturer. Why?

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