Practice Quiz

Paralegal

Category - Ethics

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Model Rule 1.8(e) prohibits lawyers from providing financial assistance to clients. Which of the following describes a situation that is recognized as an exception to Model Rule 1.8(e)?
  1. A lawyer acting as a trustee advances funds from his business account to a trust beneficiary and is later reimbursed from the trust’s bank account.
  2. A lawyer advances the filing fees and expenses of litigation, and repayment is contingent on a successful outcome of the case.
  3. A lawyer makes a client’s car payments directly to the lender so the client has transportation to work.
  4. None of the above.
Explanation
Answer: B - A lawyer advances the filing fees and expenses of litigation, and repayment is contingent on a successful outcome of the case. Answer B is the best choice because it describes a recognized exception to the rule prohibiting financial assistance to clients. Model Rule 1.8(e)(1).
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