Jean Is Playing a Video Game on a Defective Disk

question 60

Multiple Choice

Jean is playing a video game on a defective disk that melts in her game player,starting a fire that injures her hands.Jean files a suit against K-Tech,Inc.,the game's manufacturer.K-Tech is held liable under the doctrine of strict liability.A significant appli-cation of this doctrine is in the area of

• A)cyber torts.
• B)intentional torts.
• C)product liability.
• D)unintentional torts.

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Definitions:

Goodwill

An intangible asset that represents the surplus value of a company beyond its physical assets and liabilities, often arising from factors such as brand reputation, customer relationships, or intellectual property during an acquisition.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest spread among individual shareholders.

Fair Value

An approximation of the cost at which an asset or liability might be purchased or sold in a present-day deal between agreeable participants.

Excess Amortization

The portion of amortization expenses that exceeds the cash or profit generated by the asset being amortized, typically relevant in high depreciation contexts.