A Seller of a Defective Product Cannot Be Held Strictly

question 19

True/False

A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, often used in legal documents.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Cash Dividend

A payment made by a company out of its profits to its shareholders in cash, typically on a regular basis.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.