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(Solution) - Tony Chase Inc the motorcycle manufacturer included the foll

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Tony Chase, Inc., the motorcycle manufacturer, included the following note in its annual report:

1. Why are these contingent (versus real) liabilities?
2. In the United States, how can the contingent liability become a real liability for Tony Chase? What are the limits to the company?s product liabilities in the United States?
3. How can a contingency outside the United States become a real liability for the company? How does Tony Chase?s potential liability differ for claims outside the UnitedStates?


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This question was answered on: Jul 11, 2017

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