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Fraud in franchising may occur at different stages of the franchise relationship. Which of the following describes a franchise success rate fraud? Select one: a.

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Fraud in franchising may occur at different stages of the franchise relationship. Which of the following describes a "franchise success rate" fraud? Select one: a. This franchise fraud occurs when a franchiser refuses to pay royalties under the franchise or license agreement for the right to use the franchiser's trademark, trade name, and business system. b. This franchise fraud occurs when a franchiser falsely claims a high percentage of its franchisees have remained in continuous operation from opening day to the present. But in fact, many of the franchisees were sold many times and in each sale, the old franchisee sold it back to the franchiser who re-sold it to a new franchisee. O c. This franchise fraud occurs when a prospective franchisee relies upon earning claims published by the franchiser as a key factor in his/her decision to buy the franchise, but those earnings claims are materially misleading, or even blatantly false. d. This franchise fraud occurs when a franchiser unlawfully terminates a franchise before the expiration of his/her contractual term. A type of vehicle insurance fraud is known as the staged accidents scheme. Which of the following best describes this insurance fraud scheme? Select one: O O a. This scheme involves an accident that is prearranged to occur on a vehicle at a certain location. The same vehicle is often involved in several prearranged accidents. The fraudster claims insurance on the staged accidents. b. This scheme involves the purchase of insurance based on a genuine certificate of tile. The certificate of title shows the legal ownership of a vehicle, but it does not show that the vehicle actually exists. The fraudster collects insurance for a non-existing vehicle. O O c. This scheme is usually the work of professional fraudsters in which a wrecked vehicle is sold but reported as being repaired. The VIN plate of the wrecked vehicle is switched with a stolen vehicle of the same make and model. The professional fraudsters collect from the sale of the wrecked vehicle and claim insurance for the repair of the stolen car. d. In this scheme, a victim's car is first passed by two cars while driving. The first passing car suddenly cuts in front of the second passing car, forcing it to stop abruptly. The victim rear-ends the second car while the first car speeds away. The rear-ended vehicle usually contains a maximum number of passengers, all with faked injuries. The fraudsters claim both vehicle insurance and personal injury insurance

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