Which of the Following Characterizes Cases Filed Under Section 402A

question 88

Multiple Choice

Which of the following characterizes cases filed under section 402A?

• A)The seller must be engaged in selling the product that allegedly caused harm.
• B)The product may not be in a defective condition but must have caused injury.
• C)The seller must prove that suitable modifications were made to the product in order to avoid liability.
• D)All cases except design-defect ones may be covered under this section.

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Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect income earned or expenses incurred but not yet recorded.

Employee Wages

Payment given to workers for their services, usually determined by the hour, day, or work completed.

Net Income

The amount of money remaining after all operating expenses, taxes, and interest have been subtracted from total revenue.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.