EquiMeds Company and GenDrugs Inc

question 46

Multiple Choice

EquiMeds Company and GenDrugs Inc. make and distribute prescription drugs. In a product-liability suit against both parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties

• A)was in privity with the injured plaintiff.
• B)exercised the least amount of due care in making the product.
• C)supplied the particular product that caused the injury.
• D)holds the largest share of the market for the product.

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Definitions:

Preferred Stock

A type of stock that typically offers dividends and other privileges, like priority in asset liquidation, over common stock but usually doesn't carry voting rights.

Adjustable Rate

Interest rates that are variable and can change over the duration of a loan, typically in relation to an index or benchmark rate.

Contractual Obligations

Commitments that must be upheld as per the terms of a contract, ensuring all parties fulfill the agreed-upon requirements and conditions.

Liquidation

The process of winding up a company's operations, selling off its assets to pay off debts, and distributing any remaining assets to shareholders.