Question

The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat emptor.

Answer 1

b. due care theory.

Step-by-step explanation:

Due care theory refers to the responsibility of the producers to protect the interest of the customer. The responsibility of the producer is greater because he has knowledge and expertise about the product and thus can prevent any defect in the product that can harm the customer. Therefore it became the moral responsibility of the producer to live up to the expectation of the customer regarding the production process.