Strict Product Liability Exists If

question 63

Multiple Choice

Strict product liability exists if:

• A) the consumer misuses the product.
• B) the consumer alters the product before he or she uses it.
• C) a defective, unreasonably dangerous product reaches the consumer or user without substantial change in the condition in which it is sold.
• D) the consumer gives the manufacturer or seller notice of the defect.

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Definitions:

Standard Markup Pricing

Adding a fixed percentage to the cost of all items in a specific product class.

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.