3.6 Customers of a large auto repair center complained that its mechanics were repeatedly pressurizing them to undertake unnecessary, expensive repairs.

This escalated to the point that the auto repair center was forced to settle with the customers in a lawsuit. In order to regain the customers’ trust, it decided that its mechanics would no longer be paid on commission. Were the abuses examples of moral hazard, adverse selection, or both? Is there any disadvantage to ending the commission system?