Attorney Arken Does Not Handle Family Law Matters So When

question 2

Multiple Choice

Attorney Arken does not handle family law matters so when one of his clients (Mrs. Gold) asks for an attorney to handle her divorce, Arken recommended Sandy Lawyer, a fellow Arken new in high school. Sandy is a terrific guy and Mrs. Gold liked him enormously. Sandy, however, enjoys surfing more than working and, as a result, completely bungled Mrs. Gold's divorce causing her to lose her rights to much of her husband's wealth. Mrs. Gold filed a complaint against Arken for "negligent referral." The likely outcome of this complaint is

• A) that it will go to trial and the outcome will depend upon exactly what Arken told Mrs. Gold about Sandy's competence.
• B) that it will be dismissed before trial because there is no cause of action that makes Arken a guaranty of Sandy's competence.
• C) that it will go to trial and the outcome will depend upon Mrs. Gold's proof that Arken's recommendation was the actual and proximate cause of her harm.
• D) that it will go to trial and the outcome will depend on the amount of harm Mrs. Gold suffered from Sandy's incompetence.

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Definitions:

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on the actual consumption of each activity.

Manufacturing Overhead

All indirect costs associated with the production process, including costs of materials, utilities, and maintenance that are not directly associated with the manufacturing of a specific product.

Activity-based Costing

An accounting approach that assigns costs to products or services based on the resources they consume, aiming for more accurate cost allocation.

Machining

The process of removing material from a workpiece using power-driven machine tools to shape it into a desired form.