Which of the Following Statements Is True of Liability Suits

question 23

Multiple Choice

Which of the following statements is true of liability suits that involve a foreign defendant?

• A) If the manufacturer is located in another country, the U.S. importer, wholesaler, or distributor is liable for the injuries caused by the defective imported product.
• B) If a foreign corporation produced the defective goods, the long-arm statute always provides a U.S. court jurisdiction over the corporation.
• C) The Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters accepts the means of service used in the United States.
• D) If a foreign defendant has no assets in the United States, the U.S. importer, wholesaler, or distributor has to pay the damages.

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Definitions:

Tractors

Agricultural machinery used for plowing, tilling, planting, and similar tasks in farming, essential for modern agriculture.

Comparative Advantage

The ability of an entity to produce a particular good or service at a lower opportunity cost than another, supporting the basis for beneficial trade.

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data, used in electronic devices.

Tires

Rubber-covered, air-filled cylindrical components that provide vehicles with traction and support.