Answer to Question 1
Automatic waiver means that once confidentiality is breached by an inadvertent disclosure, the privilege is automatically waived. The documents may be used by the party who received them inadvertently.
No waiver means that the privilege is destroyed only when a client makes a knowing and voluntary waiver of the privilege.
The balancing test considers a number of factors, such as the efforts taken to protect the information, the efforts made to correct the inadvertent disclosure, the extent of the disclosure, and the fairness to the parties. The court may impose a variety of remedies, such as unlimited use of the disclosed information, return of the documents, or disqualification of the attorney who has seen the material.
Answer to Question 2
Ethics are the minimally accepted standards of conduct in a profession. For lawyers, ethics are determined by state law based on the American Bar Associations Model Rules of Professional Conduct. For paralegals, the professional associations such as NALA (National Association of Legal Assistants) and NFPA (National Federation of Paralegal Associations) require members to conduct themselves in accordance with guidelines of ethical behavior that are very similar to the ABA Model Rules of Professional Conduct
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