In MacPherson V

question 294

Multiple Choice

In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue:

• A) Buick for negligence under contract law
• B) Buick for negligence under tort law
• C) Buick for strict liability under contract law
• D) Buick for strict liability under tort law
• E) the wheel maker, not Buick, for negligence in product construction

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Definitions:

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases are made.

Operating Cycle

The operating cycle is the duration of time that takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Accounts Receivable

Outstanding payments due to a firm from its customers for delivered goods or services awaiting payment.

Cost of Goods Sold

The total direct costs attributed to producing goods, including materials and labor, which are sold during a certain period.