Which of the Following Statements Is True of the Obvious

question 9

Multiple Choice

Which of the following statements is true of the obvious danger rule in the context of product liability?

• A) Traditionally, middlemen had a duty to warn customers of obvious dangers.
• B) It has to be implemented more frequently in order to be effective.
• C) A manufacturer need not issue a warning even after learning that the product is dangerous.
• D) It holds that the unmistakable presence of danger is a factor in determining liability.

---

Definitions:

Reasonably Possible

Refers to a situation or outcome that is within the realm of likelihood, though not certain, based on current knowledge and circumstances.

Probable Loss

An anticipated financial loss that has a greater than 50% chance of occurring, often recognized in financial statements in accordance with accounting principles.

Estimable Loss

A projected financial loss that can be anticipated and measured with reasonable accuracy.

Financial Statement Disclosure

The provision of information in a company's financial statements beyond the basic financial numbers, aimed at giving a complete understanding of the company's financial health.