Which of the Following Statements Is True of Privity of Contract

question 16

Multiple Choice

Which of the following statements is true of privity of contract?

• A) In the past, a person was not required to be in privity of contract to enforce the contract.
• B) In the past, courts allowed an injured purchaser to recover directly from the manufacturer of the goods.
• C) In most cases, the manufacturer does not have control over the condition of the product when it reaches the buyer's hands and should not be held liable for any defects in it.
• D) In most states, the buyer is permitted to sue both the retailer and the manufacturer in the same suit.

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Definitions:

Indifference Curve

A graphical representation showing combinations of two goods or services among which a consumer is indifferent, implying no preference for one combination over another.

T-Shirts

A type of clothing characterized by short sleeves, a round neckline, and no collar, typically made of cotton fabric.

Coffee

A beverage made from roasted and ground beans of the coffee plant, commonly consumed for its stimulating effects.

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives.