When Goods Are Sold for Consumer Use and Personal Injuries

question 2

Multiple Choice

When goods are sold for consumer use and personal injuries are sustained,a total exclusion of liability in the sales contract is:

• A) enforceable.
• B) unenforceable.
• C) unconscionable.
• D) both b.and c.

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Definitions:

Conversion Costs

The costs incurred to convert raw materials into finished goods, typically including labor and overhead expenses.

Painting Department

A specific section within a manufacturing process focused on applying paint or coating to products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.

Conversion Costs

The combined costs of direct labor and overhead required to turn raw materials into finished products.