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.

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Definitions:

Noncash Investing

Investment activities that do not involve the immediate outlay of cash, such as the exchange of one asset for another.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing shares, borrowing money, and repaying debt.

Statement Of Cash Flows

A financial report summarizing the total cash inflows and outflows experienced by a corporation.

Operating Activities

Business actions directly related to producing and delivering goods and services, which are reflected in the company's cash flow.