Marley David, 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 Marley-David? 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 Marley-David’s potential liability differ for claims outside the United States?