Which of the Following Is Not an Example of an External

question 92

Multiple Choice

Which of the following is not an example of an external failure cost?

• A) Accepting company liability resulting from product failure.
• B) Experiencing decreasing sales as a result of poor-quality products.
• C) Repairing or replacing defective products after they've been sold.
• D) Testing products in use at the customer's site.

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Definitions:

Private Nuisance

An unlawful interference with the use or enjoyment of a property, usually by causing harm or obstruction.

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Vicarious Liability

A legal principle that holds one party liable for the actions of another, based on the relationship between the two parties.

Occupiers' Liability Act

Legislation governing the responsibility of property owners or occupiers to ensure the safety of individuals on their premises.