A Wholesale Distributor Who Is Named in a Product Liability

question 57

Multiple Choice

A wholesale distributor who is named in a product liability suit based on strict liability could avoid liability if:

• A)The plaintiff had not purchased the product causing the injury.
• B)The distributor exercised reasonable care in all ways with respect to the product causing the injury.
• C)This product had been used for many years by other users without injury.
• D)This defect which caused the injury occurred after the product left the distributor.
• E)The product has been redesigned to eliminate the problem which caused the injury in this case.

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Definitions:

Noncash Activities

Financial transactions that do not involve the immediate transfer of cash, often reflected in supplemental disclosures in cash flow statements.

Financing Activities

Transactions involving changes in equity and long-term liabilities on the company's balance sheet.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.

Sources and Uses

A financial statement that outlines how funds are raised (sources) and spent (uses) within a business or project.