It Does Not Matter Whether or Not the Buyer Dealt

question 15

Multiple Choice

It does not matter whether or not the buyer dealt directly with the manufacturer because:

• A)the obvious danger rule is not used anymore as defense.
• B)liability based on negligence does not involve a contractual relationship.
• C)liability based on negligence involves a contractual relationship.
• D)the obvious danger rule is used as a complete defense.

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Definitions:

Earnings Before Interest And Taxes

An indicator of a company's financial performance calculated as revenue minus expenses, excluding tax and interest.

Depreciation Expense

The allocated amount of the cost of an asset over its useful life, reflecting wear and tear or obsolescence.

Tax Rate

The income proportion taken as tax from either individuals or corporations.

Variable Cost

Expenses that fluctuate in direct proportion to the volume of production or commercial operations.