Based on the situation, that was an example of : Free-Rider problems
Free-rider problems refer to a condition when an individual either consume more than the fair share or pay less than the fair share.
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Answer:
C) the presence of mold is a material adverse fact and could affect the health of the person(s) occupying the house.
Explanation:
In the given scenario the presence of the mold in the house can affect the health of the buyer so it needs to be disclosed to him. It is a material adverse fact.
According to the Alabama law the seller and agent are required to disclose any material defects the buyer who will know make the final decision.
So the agent should tell the seller that the presence of mold is a material adverse fact and could affect the health of the person(s) occupying the house.