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:

Short-run Phillips Curve

The short-run Phillips Curve depicts an inverse relationship between the rate of inflation and the unemployment rate within an economy over a short period.

Expected Inflation

The rate at which people predict prices will rise in the future, influencing saving and spending behavior.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Natural Rate

Refers to the level of economic output or unemployment that is consistent with stable inflation, not influenced by short-term fluctuations.