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Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan, one of Carl's employees, fires without warning and hits Bob in the leg. Carl checks the gun and discovers that it was assembled improperly. Bob files a suit against Eagle Tools, Inc., the manufacturer of the gun, for product liability, on the ground of strict liability. What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?
Net Operating Income
A measure of profitability that calculates how much revenue exceeds the operating expenses of a company, excluding taxes and interest.
Average Operating Assets
The average value of the assets that are used in the normal course of business operations, calculated over a specific period.
Return On Investment
A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the investment's gain relative to its cost.
Minimum Required Rate
The lowest acceptable rate of return on an investment, often used in capital budgeting to assess the feasibility of projects.
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