The Products Liability System Has Been Criticized on Equity, Distributive

question 37

Multiple Choice

The products liability system has been criticized on equity, distributive, and efficiency grounds. The equity arguments often express a belief that ________.

• A) state-of-the-art design should not be an acceptable defense in cases governed by strict liability
• B) damages awarded for pain and suffering should ideally be guided by legal standards
• C) the awards in many cases are insufficient and should be made significantly larger to compensate for actual losses
• D) cases should be decided on the basis of fault and negligence

---

Definitions:

Per-unit Standards

Defined benchmarks for the amount of materials, labor, and overhead costs that should be used in producing a single unit of a product.

Direct Labor Hours

The total time workers spend directly manufacturing a product or providing a service.

Standard Direct Materials Costs

The expected or budgeted cost for direct materials which are those materials that can be directly associated with the manufacturing of a product.

Actual Costs

This refers to the genuine expenses incurred during the production or execution of a project, as opposed to estimated costs or budgeted amounts.