ACFE CFE-Law Exam - Topic 3 Question 68 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 68
Topic #: 3

Company A used Company B to recover damages for the breach of a contract. In the same proceeding. Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract. In this case, what would Company B's claim against Company A be called?

ACounterclaim

BCollateral attack

CReversal

DCross-claim

Show Suggested Answer

Suggested Answer: A

by Shawna at Nov 19, 2025, 04:02 AM

Limited Time Offer

25%

Off

Get Premium CFE-Law Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Caitlin

5 months ago

I agree, counterclaim is clear. It’s about damages in the same case.

upvoted 0 times

...

Kris

5 months ago

Collateral attack sounds too complicated for this situation.

upvoted 0 times

...

Nikita

5 months ago

I feel like counterclaim is the best choice. It’s straightforward.

upvoted 0 times

...

Julio

5 months ago

I’m leaning towards cross-claim. But counterclaim seems right too.

upvoted 0 times

...

Armanda

6 months ago

Not so sure about that, could be a collateral attack too.

upvoted 0 times

...

Donte

6 months ago

100% agree, it's a counterclaim!

upvoted 0 times

...

France

6 months ago

Wait, is it really that straightforward?

upvoted 0 times

...

Jamey

7 months ago

I thought it was a cross-claim at first.

upvoted 0 times

...

Hoa

7 months ago

Counterclaim, easy peasy. Though I do wonder if the person who wrote this question was trying to be a little too clever.

upvoted 0 times

...

Keith

7 months ago

Counterclaim, duh. This is like Law 101. Gotta love these easy questions on the exam.

upvoted 0 times

...

Vi

7 months ago

Counterclaim makes the most sense. I can't imagine why anyone would think it's a Collateral attack or a Reversal.

upvoted 0 times

...

Jess

7 months ago

I agree, Counterclaim is the correct answer. It's the most common way for the defendant to assert their own claims against the plaintiff.

upvoted 0 times

...

Devon

7 months ago

The answer is clearly a Counterclaim. That's the standard legal term for when the defendant brings a claim against the plaintiff in the same proceeding.

upvoted 0 times

...

Edward

8 months ago

I feel like collateral attack might be a term we discussed, but it doesn't seem to fit here. Counterclaim sounds more appropriate.

upvoted 0 times

...

Lorean

8 months ago

I practiced a similar question where a defendant filed a counterclaim, so I'm leaning towards A, but I could be wrong.

upvoted 0 times

...

Dolores

8 months ago

I'm not entirely sure, but I remember something about cross-claims being related to claims against co-defendants. This seems different.

upvoted 0 times

...

Lynelle

8 months ago

I think Company B's claim would be called a counterclaim since they're responding to Company A's original claim.

upvoted 0 times

...

Denny

8 months ago

I'm pretty confident this is a counterclaim. Company B is asserting its own claim against Company A within the same lawsuit, rather than a separate collateral attack or cross-claim.

upvoted 0 times

...

Izetta

8 months ago

Definitely a counterclaim! It fits the scenario.

upvoted 0 times

...

Francoise

9 months ago

I think it's a counterclaim.

upvoted 0 times

...

Britt

9 months ago

It's definitely a counterclaim.

upvoted 0 times

...

Magdalene

9 months ago

Hmm, this is tricky. I'm leaning towards D) cross-claim since Company B's claim is against the other party in the same case, not a counterclaim against the original claim.

upvoted 0 times

...

Eulah

9 months ago

Okay, let me think this through. Company B is making a separate claim against Company A in the same proceeding, so I'm going to go with A) counterclaim.

upvoted 0 times

...

Claribel

9 months ago

I'm not sure, the question mentions "fraudulently induced" which makes me think it could be a collateral attack. But I'm not totally confident on that.

upvoted 0 times

...