National Board Of Examination (NBE) Arts Practice Exam

If a funeral service practitioner intentionally misrepresents a benefit of a preneed funeral arrangement, what has occurred?

1. Fraud

2. Duress

3. Mistake

4. Undue influence

The correct answer is: Fraud

The situation described involves the intentional misrepresentation of a benefit related to a preneed funeral arrangement, which constitutes fraud. Fraud occurs when a person intentionally deceives another party for personal gain or to cause harm. In this context, if the funeral service practitioner knowingly provides false information about the benefits of the arrangement, it is a deliberate act designed to mislead the consumer into making a decision based on incorrect information. The key elements of fraud are the misrepresentation of facts, the intent to deceive, reliance by the victim on that misinformation, and resulting damages. Duress, on the other hand, involves coercion or threats to force someone into a decision, while mistake refers to an unintentional error or misunderstanding by one or more parties. Undue influence implies an imbalance of power where one party exerts excessive pressure on another to gain a favorable outcome. In this case, since the action is characterized by an intentional deception for profit, it aligns with the definition of fraud, making that the accurate identification of what has occurred.