Mighty Fine Company Makes a Surfboard,which It Sells to Nature

question 5

Essay

Mighty Fine Company makes a surfboard,which it sells to Nature Sports Equipment (NSE),a distributor.NSE sells the board to Ocean Store,where Pat buys it.Pat gives it to Quinn,who suffers an injury due a defect in the board.If Mighty Fine,NSE,and Ocean Store were not negligent,can they be liable to Quinn for the injury If so,how what basis,and for what reasons

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Definitions:

Ending Inventory

The total value of all inventory that a business has in stock at the end of an accounting period.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product.

Inventory

Goods and materials held by a business for the purpose of resale or production.