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

What term describes a situation involving coercion or threats to compel someone to act?

1. Coercion

2. Duress

3. Pressure

4. Threat

The correct answer is: Duress

The term that accurately describes a situation involving coercion or threats to compel someone to act is "duress." Duress specifically refers to a scenario where an individual is forced to act against their will due to the use of threats, intimidation, or unlawful pressure. This concept is crucial in business law as it relates to the validity of contracts. Contracts entered into under duress may be deemed voidable because the free will of the party who was coerced was compromised. While coercion is a broader term that can encompass a variety of situations where pressure is applied to enforce compliance, duress is the legal term that specifically acknowledges the presence of threats or violence as a means of influencing someone's actions. The term "pressure" is more general and does not necessarily imply the illegal or unlawful nature that duress conveys. "Threat" alone does not indicate that the person was compelled to act; it refers to the action of stating an intention to inflict harm or consequences, which may not always translate into the immediate pressure to act. Therefore, "duress" is the most precise and applicable term in the context of compulsion by threats.