A Relatively Low Margin of Safety Ratio for a Product

question 59

Multiple Choice

A relatively low margin of safety ratio for a product is usually an indication that the product:

• A)Is losing money.
• B)Has a high contribution margin.
• C)Is riskier than higher margin of safety products.
• D)Is less risky than higher margin of safety products.
• E)Requires heavy fixed cost to produce or sell.

Comprehend the nuances of horizontal privity and its relevance to product liability.

Recognize the existence and creation of implied warranties in sales contracts.

Understand how express warranties are created and how they differ from opinions or representations.

Distinguish between various defenses available to manufacturers or sellers in product liability cases.

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Definitions:

Medication-Dispensing Device

A machine or tool designed to accurately dispense prescribed drugs to patients.

Nasogastric Tube

A medical device inserted through the nose into the stomach to deliver food and medicine, or to remove substances from the stomach.

Hospitalized Patient

A patient who has been admitted to a hospital for treatment and observation.

Restraint

A measure or device used to limit the movement or activity of a person or part of the body, often for safety or medical reasons.