Harley-Davidson, Inc., the motorcycle manufacturer, used to include the following note (adapted) in its annual report: Notes to Consolidated Financial Statements 7 (in Part): Commitments and Contingencies (Adapted) The Company self-insures its product liability losses in the United States up to $3 million. Catastrophic coverage is maintained for individual claims in excess of $3 million up to $25 million. 1. Why are these contingent (versus real) liabilities? 2. How can a contingent liability become a real liability for Harley- Davidson? What are the limits to the company s product liabilities in the United States?
bigthoughtwritingservices is a unique service that provides guidance with different types of content. Please rest assured that the service is absolutely legal and doesn’t violate any regulations. It can be used for generating new ideas and thoughts for your own project, additional insight into the subject, or encouragement for further researches.