Question

A person who gives something of value to induce a prospect to purchase from that person is guilty of the unfair trade practice of------------?

A. Defamation.
B. Rebating.
C. Misrepresentation.
D. Boycott.

Answer 1

The correct answer is Rebating.

Step-by-step explanation:

The correct answer is Rebating.

Rebating refers to the practice of offering something of value to a prospect or customer in order to encourage them to make a purchase. It is considered an unfair trade practice because it can potentially distort competition by giving one seller an unfair advantage over others.

For example, if a car salesman offers a customer a cash rebate or a free gift to persuade them to buy a vehicle from their dealership, it would be considered rebating.