In the Case of a Product Where the Risks Are

question 31

Multiple Choice

In the case of a product where the risks are open and obvious,many courts hold that:

• A) buyers must register a complaint with the seller.
• B) strict liability must be applied.
• C) the case will be covered under section 402A.
• D) there is no duty to warn.

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Definitions:

Significant Influence

The power to participate in, but not control, the financial and operating policy decisions of another entity, which is often evidenced by owning a substantial portion of the voting rights.

Policy-making Processes

The steps involved in the development, decision-making, and implementation of policies within an organization or government.

Dividend Policy

A company's strategy in deciding the size and pattern of dividend distributions to its shareholders.

Associate Entity

An entity over which an investor has significant influence, typically through ownership of between 20% and 50% of voting stock.