To Establish an Environmental Strict Liability Suit at Common Law

question 10

Multiple Choice

To establish an environmental strict liability suit at common law, the plaintiff must show that the:

• A) defendant was negligent in her operations.
• B) plaintiff was not negligent.
• C) defendant is engaged in an abnormally dangerous activity in an inappropriate location.
• D) location for such activity is indeed appropriate.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Margin of Safety

The difference between actual or anticipated sales and the sales level at the break-even point, measured to assess the risk of not covering fixed costs.

Contribution Format

A method of income statement presentation where costs are separated into variable and fixed categories, emphasizing the contribution margin.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues and expenses.