The Legal Principle That Anyone in the Value Chain of a Product

question 65

Multiple Choice

The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is

• A) strict liability.
• B) absolute liability.
• C) relative liability.
• D) market share liability.

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

Net Profit

The remaining income after all expenses, taxes, and costs have been deducted from a company's total revenue.

Owner's Equity

The portion of a company's total value that belongs to its owners or shareholders, often referred to as net assets.

Cash-flow Problems

Financial issues arising from an imbalance between the cash entering and exiting a business, potentially impairing its operations.