Which of the Following Statements Is True About Strict Liability

question 48

Multiple Choice

Which of the following statements is true about strict liability?

• A) It applies only to manufacturers of a defective product.
• B) It is liability without fault.
• C) It requires privity of contract between the plaintiff and the defendant.
• D) It covers casual sales and transactions.

---

Definitions:

Loanable Funds

The money available for borrowing, influenced by savings and investments, within an economy.

Interest Rates

A financial charge, calculated as a portion of the principal, assessed by a lender against a borrower for the loan of money or assets.

Marginal Extraction Cost

The additional cost associated with extracting one more unit of a resource, considering factors like difficulty of extraction and resource depletion.

Discount Rate

The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a central bank.