Which of the Following Is True with Regard to Strict

question 53

Multiple Choice

Which of the following is true with regard to strict liability?

• A) The rationale for strict liability is "to insure the manufacturers against unfair competition."
• B) Under strict liability the concept of fault is irrelevant and negligence is not required.
• C) A defense that a firm used state-of-the-art design is likely to prevail when a standard of strict liability is applied.
• D) Strict liability does not apply to manufacturing defects.

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Definitions:

Check-Cashing Outlets

Financial service providers that offer clients the ability to cash checks for a fee without needing a bank account.

Pay a Fee

The act of making a payment for a service or the right to engage in a particular activity, typically set at a fixed rate by the service provider or regulating authority.

Fractional Reserve

A banking system in which banks hold reserves that are less than the amount of their customers' deposits, allowing them to lend out the majority of deposited funds.

Commercial Banks

Organizations that take in deposits, issue different types of loans, and offer a range of financial services to both individuals and enterprises.