City Slick, Inc. makes cosmetics. City Slick intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Dora buys a City Slick product and suffers an injury. City Slick is most likely liable for :

These are the options for the question:

A) Product misuse

B) Fraud

C) Privity

D) Puffery

And the correct answer is:

B) Fraud

Explanation:

A Fraud is an act of intentional deception with the goal of gaining money, benefits, or other form of compensation.

City Slick, Inc. is liable for fraud because it intentionally mislabeled the packaged products to hide a defect, with the aim of selling the product. City Slick, Inc. knew that a defective product can hardly sell, and if it sells, it's probably at a very low price.

The firm wanted to earn the profit despite the damage of the product, and resorted to fraud to achieve that.