The Rule Requiring Producers to Pay Compensation to Consumers Injured

question 331

Multiple Choice

The rule requiring producers to pay compensation to consumers injured by defective products, even though reasonable care has been exercised, is called:

• A) caveat emptor
• B) hazardous liability
• C) liability for misrepresentation
• D) res ipsa loquitur
• E) none of the other choices

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Definitions:

Consumer

An individual or group who purchases goods or services for personal use and not for manufacture or resale.

Good 2

Refers to a second good or item considered in a theoretical economic model, usually in the context of comparative analyses.

Fixed Ratio

A quantitative relationship between two or more variables where one variable is a fixed multiple of the others, often used to describe proportional relationships in finance and engineering.

Excess Goods

Products that exceed the demand in the market, often leading to surplus and potential waste.