E Corp sold five million toasters. The company never had a safety problem. One of its toasters, for no clear reason, electrocutes the son of the woman who bought the toaster. In her suit against E Corp for the death of her son (a tort), the company is likely to be held:
a. not liable because one in five million is evidence of high quality, not a safety problem
b. not liable because the toaster was purchased by the woman, not her son, so there is no right of suit c. not liable because of assumption of the risk
d. liable for failure to warn of dangers in use
e. liable in strict liability for producing a product with a defect that caused injury
e
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Indicate whether the statement is true or false
Which of the following describes the recommended prerequisites for managing vulnerabilities?
A. Determine the main objective of vulnerability management, and assign roles and responsibilities. B. Implement the COSO ERM framework, and identify key vulnerabilities. C. Identify the key vulnerabilities, and implement appropriate controls to minimize the vulnerabilities. D. Implement suitable controls, and assess those controls for potential vulnerabilities.
In the event identification component of the COSO ERM framework, management must classify events into which of the following?
A. Controls and vulnerabilities. B. Risks and rewards. C. Weaknesses and vulnerabilities. D. Risks and opportunities.
Which of the following costing methods charges all the manufacturing costs to the products?
A) variable costing B) direct costing C) absorption costing D) contribution costing