Question

25. When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage?

(Choose from the following options)
1. Product liability
2. Personal and advertising injury liability
3. This claim would not be covered.
4. Premises and operations

Answer 1

ABC Appliance's coverage would come from product liability under its general liability insurance.

Step-by-step explanation:

The coverage for ABC Appliance's lawsuit would come from product liability under its general liability insurance. Product liability insurance provides coverage for legal claims resulting from injuries or damages caused by a defective product. In this case, ABC's marketing claim about its mowing machine being the only safe mower in town led to the lawsuit by XYZ Lawn and Garden. The lawsuit would fall under product liability as it involves a claim against the safety and functionality of ABC's mowing machine.