The Distributive Objection to Products Liability Is That ________

question 40

Multiple Choice

The distributive objection to products liability is that ________.

• A) it is inequitable to assess damages to firms when there was nothing they could have done to prevent the injury
• B) a reduction in the liability of retailers is likely to have negative consequences for businesses
• C) the awards in many cases are too large and seem to provide a prize, as in a lottery, rather than providing compensation for actual losses
• D) the awards in cases decided on the basis of fault and negligence are mostly inadequate

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Definitions:

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public, often utilized by large institutional investors to facilitate block trades without impacting the market with their large orders.

Exchanges

Places where securities, commodities, derivatives, and other financial instruments are traded.

Risk Premiums

The additional returns required by investors for taking on higher risk compared to a risk-free investment.

Maturity Risk

Refers to the risk associated with the length of time until the debt securities reach their date of maturity, affecting their price and interest rates.