Final answer:
Intentional misrepresentation occurs when a seller or lessor either misrepresents the quality of a product or conceals a defect in it. Option C
Step-by-step explanation:
When a seller or lessor misrepresents the quality of a product or conceals a defect in it, this is known as intentional misrepresentation, which is synonymous with fraud in the context of legal terms for selling goods. The correct answer to the question is Intentional misrepresentation or fraud, as it involves knowingly misleading a buyer about the quality or condition of a product.
To reassure a possible buyer faced with imperfect information, a seller might implement several strategies. These could include providing a comprehensive warranty, having transparent customer reviews and ratings, offering a money-back guarantee, conducting independent quality assurance testing, and clearly communicating accurate factual claims about the product's performance.
Adhering to Federal Trade Commission (FTC) regulations, which check factual claims and prohibit untrue "facts" in advertising, is also essential.
The principle of caveat emptor, which means "let the buyer beware," emphasizes the buyer's responsibility to scrutinize the product before purchasing, especially in situations with asymmetric information. Nonetheless, sellers should strive to minimize information asymmetry to build trust with consumers. Option C