Which statement best describes the effect of advertising puff on misrepresentation?

• A. It is always actionable
• B. It automatically gives a right to rescind
• C. If the true position was known before exchange, no action can be taken against the seller
• D. It legally binds the seller to the statements

Answer: (C)

Puff in advertising is generally treated as promotional exaggeration or opinion rather than a factual misstatement. For misrepresentation to be actionable, there must be a false statement of fact that the other party relied on when entering the contract. Puff is not typically something a reasonable person would regard as a factual claim, so it does not usually give rise to a misrepresentation claim or a right to rescind.

The statement that best describes the effect is that if the true position was known before exchange, no action can be taken against the seller. If the buyer already knows the true facts, there has been no reliance on any misstatement, so there is no misrepresentation and no remedy. This captures why advertising puff is not normally actionable and why having the accurate information beforehand prevents a claim.

The other options don’t fit. Puff is not automatically actionable, nor does it automatically grant a right to rescind, and it does not bind the seller to the statements.