It Is Impossible for Counselors to Understand All Aspects of the Law

question 2

Multiple Choice

It is impossible for counselors to understand all aspects of the law, but the best advice for counselors who face legal questions is to:

• A) listen to their lawyer and do what the lawyer says.
• B) educate themselves about the law and avoid lawyers.
• C) obtain licensure to protect themselves.
• D) purchase minimal professional liability insurance coverage.
• E) avoid problems by always doing things in such a way that no one could ever complain.

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Definitions:

Automated Collection

The use of computerized systems to gather debts or receivables efficiently, often used by financial institutions and collection agencies.

Short-swing Profits Rule

A regulation intended to prevent insider trading by requiring company insiders to return any profits made from the purchase and sale of company stock within a six-month period.

1934 Act

The Securities Exchange Act of 1934, which governs the trading of securities in the U.S., establishes the Securities and Exchange Commission (SEC), and mandates reporting by publicly traded companies.

Short-swing Profits Rule

A regulation intended to prevent insiders of a company from taking advantage of non-public information for quick financial gains by buying and selling their own company's stock within a six-month period.