Final answer:
Coverage under Products Completed Operations for a product that injures someone in Europe depends on the insurance policy's specific terms, particularly the territorial limits and any endorsements for European coverage. Typically, policies may offer worldwide coverage, and jurisdiction could also affect where claims and suits must be brought for coverage to apply.
Step-by-step explanation:
If a product purchased in the U.S. subsequently injures a claimant in Europe, the coverage under the Products Completed Operations coverage can depend upon the specific terms and conditions of the insurance policy. Generally, this coverage is intended to protect the business against liability claims for damage or injuries caused by their products after they have been put into use. However, the territorial limits of the insurance policy are crucial in determining coverage.
Typically, one might think that the merchant's position regarding coverage would be that it is not covered as the product was out of the physical possession of the insured and off of his premises (option a), or no coverage as the loss was outside the U.S. (option b). However, many insurance policies offer worldwide coverage for products liability, so neither of these would automatically be correct without more information about the policy's territorial limits.
Option (c) indicates coverage is only present with a specific endorsement for European coverage which may or may not be the case depending on the policy. Meanwhile, option (d) suggests that coverage is provided if the claim and any suits are brought in the U.S., which may pertain to the jurisdiction clause in the policy.