The Case of MacPherson V

question 16

Multiple Choice

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts

• A) expanded the liability of manufacturers for injuries caused by defective products.
• B) adopted the principle of caveat emptor.
• C) permitted consumers to sue the retailer from whom they had purchased the product.
• D) adopted the principle of strict liability.

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Definitions:

Leftover Income

Leftover Income refers to the amount of income remaining after all expenses and taxes have been paid.

Budget Constraint

An economic model that represents all the combinations of goods and services a consumer can afford given their income and the prices of goods.

Bundle

A collection of products or services sold as a single package deal, often at a discounted price.

Budget

A financial plan for a defined period, outlining expected revenues and expenditures.