Leasing License Practice Exam

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Which of the following is NOT a characteristic of fraud?

Intentional deceit
Unintentional mistakes
Misleading information
Unfair advantage over another party

The correct answer is: Unintentional mistakes

The choice indicating unintentional mistakes is not a characteristic of fraud because fraud inherently requires a willful and intentional act aimed at deceiving another party for personal gain. In legal and financial contexts, fraud is defined by the presence of intentional deceit—meaning that the perpetrator knowingly provides misleading information or engages in deceptive practices with the intent to mislead others. In contrast, unintentional mistakes do not involve an element of deceit or intent to harm another party. This distinction is crucial because while negligent actions can lead to erroneous outcomes, they lack the deliberate and harmful intent that defines fraudulent behavior. Therefore, unintentional mistakes cannot be classified alongside traits of fraud, such as intentional deceit, misleading information, or gaining an unfair advantage over another party.