We do cover principle application questions. This is an odd version of it, but the essence is the same: identify the principle and check off the box(es). With this question structure, we have to identify what box or boxes are not checked off in the application and find the answer that checks them off.
If the principle is "to get an award, you must be tall and fast" and the application is "Tim is fast, so he got an award," it's clear that "he's tall" is missing. So, you'd look for an answer that says that Tim is tall.
Here, the principle is if deliberate attempt to mislead --> guilty of misrepresentation. (And, it doesn't matter if you say the descriptions are "opinions.")
The application is that Healy's described a vase incorrectly, thus it's guilty of misrepresentation. What's missing? We're missing that it was a deliberate attempt to mislead.
With that in mind, let's look at the answer choices:
(A) is about price - out of scope. It's tempting if you thought "Aha! Here's why Healy's would deliberately mislead bidders." However, we still don't know that Healy's did act on this potential temptation. You shouldn't have to work so hard to make an answer fit.
(B) is out of scope. Who cares which bidders were or were not willing to bid?
(C) is tricky! We can eliminate it because it's about Healy's policy about dating works. Who cares what the policy is? We care if it was a deliberate attempt to mislead!
(D) is about what some Healy's staff members think about what information should be included in descriptions - who cares?! Was Healy's trying to mislead bidders about that dang vase?
I hope that clears it up.
#officialexplanation