Mattel, Inc. had to recall 19 million toys because it learned that its manufacturer/supplier in China had used lead-based paint on the toys, a paint that is prohibited in the United States. Mattel: a. is liable to purchasers as a manufacturer/seller of toys. b. is not liable to purchasers of the toys for any injuries resulting from the lead because it did not manufacture the toys or authorize the use of lead paint. c. is not liable to purchasers because there is no privity of contract. d. can escape any liability because it was unaware of the lead paint use.

a. is liable to purchasers as a manufacturer/seller of toys.

Explanation:

Mattel is the producer of the toys even if it was it's manufacturer in China that made the toys. Using lead paint can lead to poisoning of children. So the toys produced can be considered to be harmful and defective.

The manufacturer of a product has a product liability on every good delivered to the consumer. Product liability is that borne by the manufacturer of a good for putting defective product in the hand of the consumer.

So for any damage or health issues that come up as a result of use of the toys, Mattel is liable.