Although Disclaimers of Liability Are Generally Ineffective,parties in the Chain

question 22

Multiple Choice

Although disclaimers of liability are generally ineffective,parties in the chain of distribution should enter into contracts that _____ for defects caused by other members of the distribution chain.

• A) place entire assumption of risk upon buyers
• B) put into writing the failure to warn
• C) invoke the statute of limitations
• D) give them the right to indemnity

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Definitions:

Financial Statements

Papers detailing a corporation's fiscal health through various financial records such as balance sheets, income statements, and cash flow reports.

Small Co.

A colloquial term generally referring to a small company or corporation with limited resources and market share.

Recognized as Shareholder

Being officially acknowledged or identified as having legal ownership and rights in a corporation's shares.

Due Diligence

An investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.