The Concept of Conflict of Interest as It Relates to the Law

question 64

Multiple Choice

The concept of conflict of interest as it relates to the law of agency includes which of the following?

• A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents.
• B) An agent may not represent her principal in a transaction in which the agent has a personal interest.
• C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency.
• D) All of these.

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Definitions:

NPV Forecast Chart

A visual representation forecasting the Net Present Value of a project or investment over time, depicting the expected profitability.

Percentage Of Risk

The proportion of uncertainty or the chance of occurrence of potential adverse events expressed as a percentage.

Undesirable Outcome

An unfavorable result or effect that occurs from an action, process, or situation.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.