What Is the Significance of a "Defect" in a Products

question 69

Multiple Choice

What is the significance of a "defect" in a products liability case based on strict liability?

• A) It is not necessary,but can be used to eliminate the need to prove that there was an injury.
• B) It is a required element in the proof of such a case.
• C) Its presence would allow punitive damages to be awarded.
• D) Its presence would eliminate liability for the defendant.
• E) The party who caused the defect is the only one who can be held liable.

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Definitions:

Ample Capacity

A situation where a company or facility has enough resources, often production capability or space, to meet current or future demand without strain.

Allocation Bases

Allocation bases are criteria or standards used to distribute costs among different departments, products, or activities in a fair and logical manner.

Indirect Costs

Indirect costs are expenses not directly linked to a specific product or service, such as administrative salaries, utilities, and rent. These costs are essential for the overall operation but not traceable to a single item.

Department Income Statements

Financial statements that show the revenue, expenses, and profit or loss of individual departments within an organization.