If the Consumer Knows the Risks Associated with the Use

question 72

Multiple Choice

If the consumer knows the risks associated with the use of a product and still chooses to use it he is:

• A) assuming the risk and thus relieving the manufacturer of liability
• B) assuming the risk, but not relieving the manufacturer of liability
• C) still able to sue if the manufacturer if injured because of ultimate liability
• D) still able to sue the manufacturer if injured because of absolute liability
• E) none of the other choices are correct

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Definitions:

Information Asymmetry

A situation in which one party in a transaction has more or superior information compared to another party.

Worker

An individual engaged in a specific activity or labor, especially for pay.

Employer

An individual or organization that hires and pays workers for their services or labor.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.