If Iron Horse Helmets (IHH) were to contract with a Chinese manufacturing firm to provide IHH with superior quality helmets for sale in the United States but discovered that the shipments were actually of inferior quality when they were received, IHH would be said to be acting opportunistically.

Question

Quizplus · Accepted Answer

Acting opportunistically would mean that IHH knowingly took advantage of the Chinese manufacturing firm, which is not the case if they believed they were receiving superior quality helmets but instead received inferior quality helmets. The correct term for this situation would be an adverse selection.

If Iron Horse Helmets (IHH) Were to Contract with a Chinese