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miv72 [106K]
3 years ago
11

Before the case of Macpherson v Buick Motor Car in 1916, the law based liability for injuries due to a defective product on:____

.
A. The principle of striet liability.
B. Whether the manufacturer exercised due care.
C. The doctrine of the reasonable person.
D. The direct contractual relationship between the seller and the consumer.
Business
1 answer:
valina [46]3 years ago
7 0

Answer:

A. The principle of strict liability.

Explanation:

The MacPherson v. Buick Motor Car case in 1916 changed the way product liability would be considered in the US. Strict product liability doctrine states that a manufacturer can be sued not only as a result of their negligent acts, but also for selling defective products. Before that case, privity of contract was required in order for someone to sue a manufacturer, this means that both parties had to engage in a contract. But this case resulted in consumers being able to sue manufacturers even if they did not engage in a contract directly with them. Actually, how many of us buy things directly from a manufacturer? We generally buy goods from retailers, and that is the reason why this case was so important.

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
lakkis [162]

Answer:

1.Cost of direct material used =$168000

2.cost of  direct labor used =$100000

3.Cost of goods manufactured =$396800

4.cost of goods sold =$422100

5.Gross profit = $577900

6.Under applied factory overhead =$84000

Explanation:

Direct labour= (D/L)

Direct material = (D/M)

Factory overhead =( FOH)

Raw material used = material (open) +purchased -material (end)

                               = 30000+194000-56000

                              = 168000.

Entry:  Dr work in process  168000

                   Cr raw material          168000

Manufacturing cost = Raw material used + direct labor cost + factory overhead.

                        = 168000+100000+(16000+23000+100000) = $407000.

COGM= Manufacturing cost+work in process (open)-work in process (end)

          = 407000+9900 - 20100 = $396800.

Applied factory overhead= direct labor * predetermined rate

                                          = 100000*55% = $55000.

entry: Dr  work in process  55000

               Cr Applied factory overhead   55000.

Cost of goods sold = Cost of goods manufactured + finished goods (open) -finished goods (end).

                             = 396800+59000-33700 =$422100.

                                             T-account

Raw material                                                           Work in process

Dr___________Cr__                                      __ DR ___________CR

30000--                                                         (open)  9900 ----

194000---                                                     (D/L)  100000   ---  

             ----                  56000                     (FOH) 55000    ---   20100

            ---- bal figure 168000                             168000  --   bal fig 312800.

Actual factory overhead = $139000

Applied factory overhead =$<u>55000</u>

Under applied factory overhead = 84000.

Sales =                                                                                             1000000

Less cost of goods sold =                                                             (<u>422100</u>)

Gross profit                                                                                    577900

6 0
3 years ago
Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on
Andrej [43]

Answer:

C) Operating, $12,000; financing $6,000.

Explanation:

Interests expenses do no change the notes payable or bond, but results in the reduction of the cash flow of a company. Therefore, the interests paid on both short terms notes payable and interest on long-term bonds will appear under the operating activities section of the cash flow statement.

Dividend appears under the financing activities section of the cash flow statement.

For this question, we therefore have:

Cash outflows from operating activities = Interest on short-term notes payable + Interest on long-term bonds = $2,000 + $10,000 = $12,000

Cash outflows from financing activities = Dividends on common stock = $6,000

Therefore, the correct option is C) Operating, $12,000; financing $6,000.

4 0
3 years ago
What part of a check is the least important
tatiyna
The memo line is the least important part.
3 0
3 years ago
Read 2 more answers
A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact
mariarad [96]

Answer: Company should not expand to either.

Explanation:

Find the expected values of expanding to either country and pick the country with the highest expected value:

China:

= ∑(Probability of outcome * Outcome)

= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)

= -$300,000

Vietnam:

= (70% * 1,000,000) + (30% * -2,500,000)

= -$50,000

<em>Both countries result in an expected loss so company should not expand to either of them. </em>

3 0
3 years ago
Common stock​ value: Constant growth The common stock of Barr Labs​ Inc., trades for ​$120 per share. Investors expect the compa
BlackZzzverrR [31]

Answer:

Dividend growth rate anticipated = 14.66%

Explanation:

Using dividend growth model we have

P{_0} = \frac{D{_1}}{K{_e} - g}

Where P{_0} = Current market price = $120

D{_1} = Dividend to be paid at year end or next year = $1.37

K{_e} = Expected return on equity = 15.8%

g = Expected growth rate

Now putting values we have

$120 = \frac{1.37}{0.158 - g}

0.158 - g = \frac{1.37}{120} = 0.0114

0.158 - 0.0114 = g

0.1466 = g = 14.66%

5 0
3 years ago
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