Future Business Leaders of America (FBLA) Business Law Practice Exam

What is a deliberate deception intended to secure an unfair and unlawful gain called?

1. Fraud

2. Warranty

3. Garnishment

4. Breach of contract

The correct answer is: Fraud

The concept being described, where there is a deliberate deception aimed at achieving an unfair and unlawful advantage, is defined as fraud. Fraud typically involves misrepresentation of facts or deceitful practices that lead another party to act to their detriment, often for the gain of the perpetrator. This can occur in various contexts, such as financial transactions, contracts, and consumer protection. In contrast, warranty refers to a guarantee or promise made by a seller regarding the quality or nature of a product. Garnishment is a legal process whereby a portion of a debtor's earnings is withheld by an employer for the payment of a debt. Breach of contract pertains to the violation of a contractual agreement, where one party fails to fulfill their agreed-upon obligations. These terms do not specifically relate to the concept of deception for unlawful gain as fraud does.