Which of the Following Is True of Adopting the Restatement

question 99

Multiple Choice

Which of the following is true of adopting the Restatement (Third) of Torts: Product Liability?

• A) The seller's liability differed depending on whether the defect was a manufacturing defect, a design defect, or a defective warning.
• B) The seller's liability differed depending on whether the plaintiff was a merchant, a consumer, or a minor.
• C) The privity limitation was reinstated as a defense to product liability lawsuits.
• D) The state-of-the-art defense is permitted by courts in most strict liability cases.

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Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, often included as part of manufacturing overhead costs.

Work in Process

Partially finished goods that are in the process of being converted into final products within a manufacturing process.

Cost of Goods Manufactured

The total cost incurred to produce products during a specific period, including costs of direct materials, direct labor, and manufacturing overhead.

Direct Materials

Basic materials that are directly involved in the creation of a product and form a crucial part of the completed item.