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Leonard Had Incurred an Injury Due to a Defective Product

question 29

Multiple Choice

Leonard had incurred an injury due to a defective product on December 15,2011.He had purchased the defective product on December 15,2010 from Astralibra Inc.The state of his residence has enacted a statute of repose for strict liability to be three years and enforced the doctrine of comparative fault.Leonard decides to sue Astralibra Inc.for strict liability on December 15,2016.Which of the following is true in this scenario?


Definitions:

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Direct Write-off Method

A method of accounting for bad debts that charges the amount directly to expense when it is determined to be uncollectible.

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