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If a company does not disclose all service terms to a consumer in advance, what legal issue can arise?

Answer and explanation

Correct answer: Unfair trade practice

The direct answer is option B: an unfair trade practice can arise. Consumers should receive important service terms clearly and in advance so that they can make an informed choice. If a company hides, omits, or delays material conditions, the consumer may misunderstand the price, limits, duration, cancellation rules, or service obligations. That lack of transparency can be treated as misleading conduct or an unfair trade practice, depending on the applicable law. Option A, weather risk, has nothing to do with failing to disclose contract terms. Option B is correct because it connects hidden or incomplete information with consumer protection and fair dealing. Option C, machine efficiency, concerns technical performance and does not identify the consumer-law problem. Option D, customer colour, is meaningless in this context and does not describe a recognised issue caused by undisclosed terms. The practical lesson is to present important conditions in clear language before the customer agrees. Memory cue: hidden terms plus consumer confusion points to an unfair or misleading trade practice.

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Business-EnvironmentLegal-EnvironmentClass-12Hard

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