A more thorough explanation:

The product-line exception is a legal rule that allows a successor corporation to be held liable for the acts of its predecessor in certain circumstances. Normally, when a company acquires another company's assets, it is not responsible for any liabilities or legal claims against the previous company. However, the product-line exception creates an exception to this rule when the successor corporation continues to produce the same product line under the same or a similar name as the predecessor and benefits from the predecessor's goodwill.

Suppose Company A manufactures a line of toys and sells them under the brand name "FunTime Toys." Company B acquires all of Company A's assets, including the rights to the "FunTime Toys" brand name, and begins producing the same line of toys under that name. If a child is injured while playing with one of the toys and sues for damages, Company B may be held liable under the product-line exception if it can be shown that it held itself out as a continuation of Company A and benefited from the goodwill associated with the "FunTime Toys" brand.

Another example could be a pharmaceutical company that acquires another company's assets and continues to produce a drug under the same name. If the drug is found to have harmful side effects and patients sue for damages, the product-line exception may apply if the successor company benefited from the predecessor's reputation and goodwill in the market.

These examples illustrate how the product-line exception can be used to hold a successor corporation responsible for the actions of its predecessor when it continues to produce the same product line under the same or a similar name and benefits from the predecessor's reputation and goodwill.