Zoe Sets Up a Private Meeting with Her Lawyer, Will

question 90

Multiple Choice

Zoe sets up a private meeting with her lawyer, Will, to get his advice on how to protect a secret recipe she has devised. Later that day, Will gives a copy of the recipe to his wife to use in her restaurant. Which of the following is true?

• A) Because Will has misused information of a confidential nature that was given to him in confidence, Zoe can sue for a breach of confidence.
• B) Because Will only provided the information to his wife, the exchange is protected by spousal privilege.
• C) Because Will did not misuse the information himself, no action will result.
• D) Because a recipe cannot constitute confidential information, any action Zoe might bring would likely fail.
• E) Zoe cannot sue her own lawyer.

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Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Installment Note Payable

A liability representing a loan that requires regular payments or installments over a specified period until the full principal and interest are paid.

Interest Expense

The amount an entity pays over time for the use of borrowed funds.

General Journal Entry

A general journal entry is a record of financial transactions in the accounting records of a business.