A Wholesale Distributor Who Is Named in a Product Liability

question 62

Multiple Choice

A wholesale distributor who is named in a product liability suit based on strict liability could avoid liability if:

• A) the plaintiff had not purchased the product causing the injury
• B) the distributor exercised reasonable care in all ways with respect to the product causing the injury
• C) this product had been used for many years by other users without injury
• D) this defect which caused the injury occurred after the product left the distributor
• E) the product has been redesigned to eliminate the problem which caused the injury in this case

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Definitions:

Doubtful Accounts

Doubtful accounts represent receivables that a company is uncertain to collect, typically categorized separately to reflect potential losses.

Cash Discount

A reduction in the invoice amount by the seller if the buyer pays their bill within a specified time frame, incentivizing prompt payment.

Retail Customers

Individuals who purchase goods and services for personal use from retailers, as opposed to wholesale customers.

Financing Charge

Interest or fees paid by a borrower for the use of credit or the extension of existing credit.