Strict Liability Depends on Privity of Contract Between an Injured

question 68

True/False

Strict liability depends on privity of contract between an injured party and a seller.

---

Definitions:

Total Surplus

The combined total of consumer and producer surplus, indicating the overall net gain to society from producing and consuming goods and services.

Producer Surplus

The difference between what producers are willing to sell a product for and the price they actually receive.

Equilibrium Price

The selling price where the quantity of goods on offer is equal to the quantity consumers want to buy.

Consumer Surplus

The variance between the sum consumers are willing to shell out for a good or service and the sum they actually shell out.