Safe Scooters, Inc. sold scooters which they knew had faulty brakes. Consumers found out, and Safe Scooters is now facing a lawsuit over the unsafe scooters; however, no dollar amounts have been assigned to the case. This lawsuit would be considered a(n):

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A contingent liability is a potential liability that may result from a past event. In this case, Safe Scooters is facing a lawsuit over the unsafe scooters, which is a potential liability that may result in damages or settlements. No dollar amount has been assigned yet, making it a contingent liability.