Strict Liability Depends on Privity of Contract Between an Injured

question 68

True/False

Strict liability depends on privity of contract between an injured party and a seller.

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Definitions:

Gross Sales

The total sales revenue of a company without any deductions for returns, allowances, or discounts.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.

Percentage of Credit Sales Method

An accounting technique used to estimate the value of uncollectible accounts receivable based on a historical percentage of sales that resulted in bad debts.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.