Question

Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for
A) product misuse
B) fraud
C) privity
D) puffery

Answer 1

Answer:

Letter B is correct. Fraud

Explanation:

In this question, intentional labeling to hide defects is configured by fraud. The company should be in the business of distributing and selling only products that comply with the standards required by quality regulators and do not cause harm to the consumer. A fraud is every intentional act that violates the law to achieve improper gain and deprive the consumer of their legal right.