Under Proposals to Establish Uniform Federal Standards for Determining Liability

question 16

Multiple Choice

Under proposals to establish uniform federal standards for determining liability:

• A) Plaintiffs would be discouraged from proceeding to trial.
• B) Companies would not have to go through repeated trials on the same charges in different states.
• C) Judges rather than juries would determine the original amount of punitive damages.
• D) Consumers would have to prove that a manufacturer knew or should have known that a product design was defective.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries.

Absorption Costing

A technique in accounting where all expenses from manufacturing, covering direct materials, direct labor, and overhead expenses variable and fixed, are included in the cost of a product.

Direct Materials

Raw materials that can be directly traced to the production of finished goods.

Fixed Costs

Expenses that do not change in total despite fluctuations in production levels or sales volume.