Which Is Not Correct

question 5

Multiple Choice

Which is not correct?
Where a client has a CFA with a success fee the solicitor should have explained …

• A) the potential liability for his own costs as well as of those of the opponent before the CFA is signed and at regular intervals thereafter.
• B) the right to an assessment of costs by the court whenever the solicitor seeks his costs from his client.
• C) any interest the solicitor may have in recommending a particular policy or other funding arrangement.
• D) that the CFA can be cancelled under circumstances provided in the CFA by the solicitor or the client but if by the client the full success fee may be payable.
• E) that the success fee is recoverable from the opponent if the client wins and secures a costs order in his favour.

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Definitions:

Investment Center

A decentralized unit in which the manager has the responsibility and authority to make decisions that affect not only costs and revenues but also the fixed assets available to the center.

Authority

The power or right to make decisions, direct others, and enforce obedience within a particular scope.

Plant Assets

Fixed assets that are tangible in nature, such as buildings and machinery, used in the operations of a business and expected to be useful for many years.

Profit Margin

A measure of a company's profitability, typically defined as net income divided by revenue, and expressed as a percentage.