Safe-Rite Company Makes Electrical Cords and Other Connectors for Electronic

question 63

Multiple Choice

Safe-Rite Company makes electrical cords and other connectors for electronic devices.Tina files a product liability suit against Safe-Rite,alleging a warning defect.In deciding whether to hold Safe-Rite liable,the court may consider​ 

• A) ​consumers' general lack of desire to read the product's warnings. 
• B) ​the plaintiff's specific lack of desire to read the product warnings. 
• C) ​the obvious risks of other products. 
• D) ​the obvious risks of this product.

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Definitions:

Divestiture

The sale of assets, operations, divisions, and/or segments of a business to a third party.

Spin-off

A type of corporate reorganization in which a company creates a new independent company through the sale or distribution of new shares of its existing business.

Vertical Integration

An approach where a business grows by integrating various stages of its supply chain, including instances where a producer owns both its supplier and distributor.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.