In Product Liability Law, Privity Refers To

question 68

Multiple Choice

In product liability law, privity refers to:

• A) the relationship that exists between the plaintiff and the defendant
• B) the relationship that exists between the plaintiff and his attorney
• C) the relationship that exists between contracting parties
• D) the relationship that exists between the judge and jury
• E) the relationship that exists between construction crews and their contractors

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Definitions:

Direct Materials Costs

The costs of raw materials or components that are directly used in the production of a product or service.

Work in Process

Work in Process refers to the value of goods that are in the process of being manufactured but are not yet completed.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and overhead.

Product Costs

Costs that are directly linked to the creation or acquisition of goods and services sold by a company.