Rosser and Co. markets cans of mixed nuts. The company realizes some people are very allergic to peanuts, so it has a nut mix that is advertised as peanut-free. When a customer almost died after eating a peanut that had accidentally gotten into the peanut-free mix, the company expected it would face a(n):
A) arbitration situation.
B) product liability claim.
C) FTC accusation of improper use of express warranties.
D) fine as a result of the violation of an implied warranty.
E) revision of the organizational code of ethics.

Question

Quizplus · Accepted Answer

The correct answer is a product liability claim because the company's product, advertised as peanut-free, contained peanuts, which directly led to harm to a consumer. This situation falls under product liability, where a company is held responsible for any injuries caused by their products.