Answer:
B). Misrepresentation.
Explanation:
As per the details given, the new employer possesses the authority to sue the former for 'misrepresentation' as it(former) misleads the new employer through false statements(glowing statement about a candidate) at the time of negotiation with the primary aim to induce another party to join the contract(keep the employee). But when the new employer learns of the 'misconduct on the part of that employee during his prior employment' substantiates this misrepresentation or fraudulent behavior of the former employer. Thus, the new employer could sue the former on these grounds and hence, option B is the correct answer.