The Cost of a Product Liability Claim Can Be Classified

question 94

Multiple Choice

The cost of a product liability claim can be classified as a(n)

• A)prevention cost.
• B)inspection cost.
• C)internal failure cost.
• D)external failure cost.

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Definitions:

Business Transaction

An interaction between two or more parties that involves the exchange of goods, services, or information for the purpose of conducting business.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and sue or be sued.

Liability

Liability is a legal responsibility or obligation to compensate or make amends for a loss, damage, or other wrongful acts.

Assignment

The passing of obligations, rights, or property from one individual to another.