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

What term describes the act of destroying someone's free will by force or threat?

1. Easement

2. E-commerce

3. Coercion

4. Fraud

The correct answer is: Coercion

The term that describes the act of destroying someone's free will by force or threat is coercion. Coercion occurs when an individual or entity uses intimidation, force, or threats to compel someone to act against their will, often to obtain money, services, or compliance with demands. This concept is significant within business law, as it addresses the validity of agreements and contracts formed under duress. If a contract is entered into as a result of coercion, it may be deemed voidable because one party was not acting of their own free will. In contrast, the other terms represent different concepts: easement refers to a legal right to use another's land for a specific purpose, often related to property law; e-commerce pertains to commercial transactions conducted electronically over the internet; and fraud involves deception intended to secure unfair or unlawful gain. Each of these terms has its own implications and applications within legal contexts, demonstrating how varied the field of business law can be.