Which of the Following Statements Describes a Circumstance in Which

question 77

Multiple Choice

Which of the following statements describes a circumstance in which the manufacturer or distributor is liable for selling a defective product according to strict liability in tort?

• A) The seller is not engaged in the business of selling the type of product that was found to be defective.
• B) The product developed by the manufacturer is expected to reach the consumer or user after undergoing substantial change.
• C) The product develops a defect four years after it was purchased by the consumer.
• D) The user or consumer has not bought the defective product from or entered into any contractual relation with the seller.

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Definitions:

Quantity Demanded

Refers to the specific amount of a good or service that buyers are willing to purchase at a given price, at a specific point in time.

Perfectly Inelastic Supply

A market scenario where the quantity supplied is completely unresponsive to price changes at all price levels.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied, typically upward sloping reflecting higher prices incentivizing more supply.

Perfectly Elastic

A market condition in which demand or supply for a good or service is infinitely sensitive to changes in price, leading to immediate adjustments.