A Lawyer Who Enters into a Business Transaction with a Client

question 44

Multiple Choice

A lawyer who enters into a business transaction with a client and neglects to inform the client that his credit rating is poor may be found to be

• A)in breach of the law that governs lawyers.
• B)in breach of his or her duty to inform the client.
• C)in breach of contract.
• D)in breach of the common law.
• E)in breach of his or her fiduciary duty.

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Definitions:

Circular Flow Diagram

A visual model that illustrates the economic interactions between different sectors in an economy, showing how money flows through the system.

Factors Of Production

The resources, including land, labor, capital, and entrepreneurship, that are used in the production of goods and services.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced from a fixed set of resources in a given period.

Opportunity Cost

Represents the value of the next best alternative forgone when a decision is made to choose one option over others.