[Disambiguator]

False Neutral = In Gear (but the light is on)

[Red Badger]

The light is on, but nobody's home.......

[Disambiguator]

I've had false neutrals in places you wouldn't expect, but it's not really a hazard, just embarassing when you twist the throttle expecting to go forward, and all you get is a revved up engine for your trouble. I have an older bike (I won't mention the manufacturer) that had a real problem with that between second and third gear. Hopefully a tranny rebuild will resolve the issue.