Soda Bubbles Corporation Makes and Sells Soft Drinks

question 49

Multiple Choice

Soda Bubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda beverage, which proves defective and injures her. One justification for holding Soda strictly liable for the harm caused to Talia by its defective product is that​

• A) ​Soda is in a better position than Talia to bear the cost of her injury.
• B) ​Talia is a person, not a business.
• C) ​making and selling products are abnormally dangerous activities.
• D) ​Soda and Talia are in privity.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital assets and goods, with the production and pricing of goods determined primarily by competition in a free market.

Government Intervention

This involves actions taken by a government to affect the economy beyond the basic regulation of fraud and enforcement of contracts, which can include tariffs, subsidies, and adjustments to interest rates.

Wages and Prices

The relationship between the payment workers receive for their labor and the cost of goods or services in the economy.

Rational Expectations Theory

The hypothesis that individuals form forecasts about the future based on all available information and past experiences, affecting their economic decisions.