Benita Carol Lantis, Administratrix of the Estate of Edgar R. Lantis, Deceased v. Astec Industries, Inc.

CUMMINGS, Circuit Judge.

In this diversity case, we hold, contrary to the district court’s ruling, that the seller-manufacturer of an unassembled product may be found strictly liable under Indiana law for injuries caused by a defective component part of the unassembled product where the product is to be assembled by the purchaser or user.

I

Defendant Astee Industries, Inc. (Astee), a Tennessee corporation, is engaged in the business of designing, manufacturing and selling asphalt mixing plants. In December 1977, Astee entered into a $605,000 contract with E&B Paving Co. (E&B), an Indiana…