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 fora. product misuse. b. fraud. c. privity. d. puffery

Question

Business

Lara Burns

15 March, 13:28

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 fora. product misuse. b. fraud. c. privity. d. puffery

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Answers (1)

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Cynthia Harrell · Answer 1

b. fraud

Explanation:

In this case, the answer is fraud because it refers to scam people by claiming false qualities to get a gain. When a company sells a product and mislabels the content or any information of it, this is considered fraud and serious penalties can be imposed. Also, the company will be liable for the damages the customers may have.