For the Doctrine of Strict Liability to Apply

question 212

Multiple Choice

For the doctrine of strict liability to apply:

• A) a consumer must have purchased the product directly from the manufacturer
• B) a consumer must misuse the product due to faulty instructions from the manufacturer
• C) a consumer must suffer life threatening injuries
• D) a manufacturer must not intentionally misrepresent the product
• E) none of the other choices are correct

---

Definitions:

Non-cash Items

Expenses or incomes recorded in the income statement which do not involve actual cash flow, such as depreciation, stock-based compensation, or provisions.

Cash Flow

The overall aggregation of money movement into and out of a firm, essentially determining its ability to quickly mobilize assets.

Revenues

Revenue obtained through standard business activities, factoring in discounts and allowances for goods returned.

Earnings Per Share

Earnings per share (EPS) is a financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.