A computer dealer induced a finance company to enter into a hire-purchase agreement by contributing false information about the amount of deposit paid by the customer unknowingly, who later defaulted and sold the computer to a third party. This is an example of:
A) misuse of relationship marketing.
B) sales puffery.
C) a warranty of fact.
D) misrepresentation.
E) a statement of fact.

Question

Quizplus · Accepted Answer

Misrepresentation occurs when false information is provided to induce another party into a contract, as seen in the scenario where the dealer provided false information about the deposit, leading to a hire-purchase agreement.

A Computer Dealer Induced a Finance Company to Enter into a Hire-Purchase