Which of the Following Statements Is True About the Strict

question 22

Multiple Choice

Which of the following statements is true about the strict liability doctrine?

• A) Privity of contract between the injured party and defendant is mandatory.
• B) Injured bystanders cannot recover damages under the strict liability doctrine.
• C) Parties in the chain of distribution are strictly liable only to the customer who buys the product.
• D) Injured bystanders are entitled to the same protection as the consumer or user.

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Definitions:

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in value.

Book Value

The book value represents the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation.

Additions

Increases or improvements to an asset that extend its useful life or enhance its productivity.

Plant Asset

Assets that are tangible, long-lived, and used in the production or sale of goods and services, such as buildings and machinery.