In a Product Liability Action in Which Strict Liability Is

question 55

Multiple Choice

In a product liability action in which strict liability is alleged, courts focus on ________.

• A) Whether the product was in a defective condition and unreasonably dangerous when sold
• B) Whether the manufacturer was negligent
• C) Whether the seller exercised all possible care in the preparation and sale of the product
• D) Whether the consumer had a contractual relationship with the seller
• E) Whether the manufacturer knew of a problem with the product

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Definitions:

Denominator Level

A term used in cost accounting to represent the base level or quantity used in calculating rates, such as in the determination of overhead rates or per-unit costs.

Fixed Overhead

Regular, consistent costs incurred by a business that are not affected by the level of goods or services produced, such as rent and salaries.

Budget Variance

The difference between the budgeted or planned amount of expenses or revenues, and the actual amount incurred or earned.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.