Which of the Following Statements Is True About Strict Liability

question 18

Multiple Choice

Which of the following statements is true about strict liability in tort?

• A) Product liability actions based on strict liability in tort focus on the producer or manufacturer.
• B) To succeed in a strict liability action, the plaintiff must prove that the defendant did not exercise the degree of care that is reasonably expected under those circumstances.
• C) A failure by the manufacturer or seller to adequately warn of a risk or hazard associated with the product can be used by the plaintiff to establish that the product is defective.
• D) To be successful in a strict liability action, the plaintiff must prove that the product developed a defect before it was sold.

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Definitions:

TSX

The Toronto Stock Exchange, a major stock exchange in Canada where shares of public companies are traded.

Outstanding Shares

The total number of shares of a corporation that are currently owned by investors, including restricted shares owned by the company's officers and insiders.

Fair Value

An estimate of the market price of an asset or liability, based on the current market conditions and the asset's characteristics.

Goodwill

The intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.