Question

Which of the following statements is NOT true?

1. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.

2. Quality - be it good or bad - will show up in perceptions about a firm's new products, employment practices, and supplier relations.

3. Inferior products harm a firm's profitability and a nation's balance of payments.

4. Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.

5. Self-promotion is not a substitute for quality products.

Answer 1

The correct answer is option 1.

Product liability is nothing but the part of law which emphasize on the fact that the business is responsible for manufacturing or selling defective products. This law focus on providing protection to the consumer from any kind of harm by the product they purchase. In product liability, manufacturers, distributors, suppliers, retailers and other who making the product available to public is liable. Product liability is limited to tangible personal property.