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

question 25

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 the above.

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Definitions:

Prejudice

A preconceived opinion or bias against an individual or group without sufficient knowledge, usually negative.

Self-Fulfilling Prophecy

An anticipation that, either directly or indirectly, ensures its own occurrence by fostering a loop between conduct and conviction.

Discrimination

Unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.

Jigsaw Classroom

An educational approach designed to minimize competition and promote cooperation among students by dividing assignments into interdependent parts.