The Restatement (Third) of Torts on Product Liability States That

question 263

Multiple Choice

The Restatement (Third) of Torts on product liability states that the producer of a product may be liable for defect except in which case:

• A) the producer failed to use a reasonable alternative design that would have produced greater safety
• B) producer failed to provide reasonable instructions of foreseeable risks
• C) product contains a defect even if all possible care was used in making the product
• D) producer advertised features of the product that violated federal safety standards
• E) all of the other choices are correct

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Definitions:

Produced Units

The number of units of product that have been completed during a specific time period, regardless of whether they have been sold.

Factory Overhead

Another term for manufacturing overhead, encompassing all indirect costs involved in the production process.

Fixed Costs

Costs that remain constant regardless of the level of production or sales activities, such as lease payments and salaries.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors remain valid.