Which of the Following Is True of Product Liability

question 6

Multiple Choice

Which of the following is true of product liability?

• A) Products with inherent risks are excluded from product liability.
• B) Historically, it applied to goods and not to services.
• C) It is applicable in cases where there is an assumption of risk.
• D) It is particularly applied in cases of unforeseeable misuse.

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Definitions:

Issuing Companies

Companies or entities that offer securities, such as stocks or bonds, to the public for the purpose of raising capital.

Venture Capital Investors

Individuals or firms that provide funding to start-up companies or small businesses with long-term growth potential.

Equity Holders

Investors who own shares or stock in a company, giving them ownership interest and typically voting rights in the corporation.

Start-up Firms

A newly established company that is in the phase of developing and bringing to market a new product or service.