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Lina Has Been Selling Automobile Manufacturing Equipment for the Past

Question 75

Multiple Choice

Lina has been selling automobile manufacturing equipment for the past five years and lately has been under considerable pressure to achieve her sales objectives due to poor economic trends in her area. In a recent sales presentation, Lina exaggerated the performance capabilities of the proposed equipment and later received a substantial order from the customer. From an ethical perspective, which of the following statements best describes her situation?


A) As long as her exaggerations were made verbally, she cannot be held liable for any shortcomings in performance of the equipment sold.
B) Lina knows that she can rely on the concept of implied warranty to relieve the company of any liability for performance problems with the equipment sold.
C) Salespeople exaggerating the performance capabilities of their products are an expected part of business and customers know to discount such claims when making a decision.
D) Due to the concept of the basis of the bargain, Lina is guilty of misrepresentation, and her company may be held liable for any shortcomings in performance of the equipment.

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