Which of the following is true of strict liability?
A. The essential element for strict product liability is that the product is not defective.
B. Courts never hold the retailer liable if the manufacturer is available for suit.
C. Most states hold that plaintiffs can recover for purely economic losses under strict liability.
D. The application of strict liability varies among states.
Answer: D
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Which of the following circumstances most likely would cause an auditor to believe that material misstatements may exist in an entity's financial statements?
A. The chief financial officer does not sign the management representation letter until the last day of the auditor's fieldwork. B. Management consults with other accountants about significant accounting matters. C. Audit trails of computer-generated transactions exist only for a short time. D. Accounts receivable confirmation requests yield significantly fewer responses than expected.
Singh Company sold 75 units @ $350 each on October 31, Year 2. The following information is also available: Beginning inventory25 units @ $175Feb. 2 purchase20 units @ $180June 15 purchase45 units @ $200Oct. 1 purchase30 units @ $220Required:a) Determine the amount of cost of goods sold using: 1) FIFO2) LIFO 3) Weighted Averageb) Determine the amount of ending inventory using: 1) FIFO 2) LIFO 3) Weighted Average
What will be an ideal response?
The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash$100,000 Liabilities$40,000Noncash assets 210,000 Keaton, Capital 90,000 Lewis, Capital 60,000 Meador, Capital 120,000Total$310,000 Total$310,000??Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.?The partnership feels confident it will be able to eventually sell the noncash assets and wants to distribute some cash before paying liabilities. Assuming there will be no liquidation expenses, how much would each partner receive of a total $60,000 distribution of cash?? KeatonLewisMeadorA)$40,000 $0 $20,000 B)$12,000 $24,000 $24,000 C)$20,000 $13,333 $26,667 D)$60,000 $0 $0 E)$10,000 $0 $50,000
A. Option D. B. Option B. C. Option E. D. Option A. E. Option C.
Marino and Cousins were partners in an auto rental agency. They leased from Shear a vacant lot on which to store their automobiles. As rent, they gave Shear 15 percent of their monthly profits. Is Shear a partner?