According to Section 402A of the Restatement of Torts, Second

question 34

Multiple Choice

According to Section 402A of the Restatement of Torts, Second, one who sells any product in a defective condition unreasonably dangerous to the users cannot be subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if _____ .

• A) the seller is engaged in the business of selling such a product
• B) it is expected to and does reach the user without substantial change in the condition in which it is sold
• C) the seller has exercised all possible care in the preparation and sale of his product
• D) the user or consumer has not brought the product from or entered into any contractual relation with the seller
• E) a product that is safe when delivered is subsequently mishandled or changed

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Definitions:

Production Budget

An estimate of the total output, costs, and resources required for production within a specific period to meet forecasted demand.

Cash Receipts

Cash inflows or money received by a business from various sources, including sales, investments, and financing activities.

Budgeted

The process of creating a plan to spend your money over a certain period.

Expected Unit Sales

The number of units of product a business anticipates selling over a specific period, based on forecasts.