A Wholesale Distributor Who Is Named in a Product Liability

question 63

Multiple Choice

A wholesale distributor who is named in a product liability suit based on strict liability could avoid liability if:

• A) the plaintiff had not purchased the product causing the injury.
• B) the distributor exercised reasonable care in all ways with respect to the product causing the injury.
• C) this product had been used for many years by other users without injury.
• D) the defect that caused the injury occurred because of a modification performed after the product left the distributor.
• E) the product has been redesigned to correct the defect that caused the injury in this case.

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Definitions:

Dividend Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Financial Ratio

A numerical comparison derived from a company's financial statements that investors use to analyze a company's performance.

Shareholders

Individuals, companies, or institutions that own at least one share of a company's stock, and as a result, potentially benefit from its success in the form of dividends and/or capital gains.

Premise Control

The monitoring and management of the physical space or environment in which a business operates to ensure safety and efficiency.