A Lawyer Has Entered a Contract with Her Client to Purchase

question 44

Multiple Choice

A lawyer has entered a contract with her client to purchase the client's summer cottage and is representing both herself and the client with respect to legal matters involved in completing the transaction.What is the most likely result of this lawyer's actions in these circumstances?

• A) The lawyer has breached her client's right to privilege.
• B) The lawyer has formed a binding and enforceable contract.
• C) The lawyer has breached her duty to provide reasonably competent service.
• D) The lawyer has placed herself in a conflict of interest.

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Definitions:

Excise Taxes

Taxes applied to specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and gasoline, aimed at reducing their consumption or raising revenue.

General Sales Tax

A tax imposed on sales transactions, applied to the sale of most goods and some services, and usually calculated as a percentage of the sales price.

Marginal Tax Rate

Refers to the rate at which the last dollar of income is taxed, indicating the impact of an additional dollar of income on tax liability.

Marginal Tax Rate

is the rate at which the next dollar of income will be taxed, reflecting the percentage of additional income that is paid in tax.