Which scenario exemplifies 'extortion'?

The scenario of threatening to expose damaging information unless payment is made clearly exemplifies extortion because it involves the use of coercion to obtain money or services from another person. In this case, the threat creates a situation where the individual feels compelled to act against their will in order to avoid potential harm to their reputation or other serious consequences.

Extortion is fundamentally about leveraging threats, and here, the possibility of exposing sensitive information serves as a means of intimidation, making the act illegal and unethical. The other scenarios, such as negotiating a payment for services, offering a discount for a product, and requesting donations, do not employ threats or coercive tactics and therefore do not fit the definition of extortion. These actions, in contrast, fall under normal business practices or charitable fundraising, which are lawful and voluntary.