Practice Quiz

Paralegal

Category - Ethics

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Which of the following situations is NOT specifically prohibited by the conflict of interest rules under the Model Rules?
  1. Business transactions with clients, unless the terms are fair and reasonable, the deal is fully disclosed, the client is advised to seek independent counsel, and the client gives informed consent.
  2. At the time the lawyer is hired, the lawyer obtains an agreement from the client that limits the lawyer’s malpractice liability, and the client was not independently represented.
  3. A lawyer represents a husband and wife who jointly own their home after a third party sues the husband and wife based on an injury sustained while on the property.
  4. Just before closing arguments, a lawyer agrees to accept literary rights from the lawyer’s client as part of the lawyer’s compensation.
Explanation
Answer: C - A lawyer represents a husband and wife who jointly own their home after a third party sues the husband and wife based on an injury sustained while on the property. Model Rule 1.8 lists several specific situations that are prohibited as conflicts of interest, including business transactions with clients, soliciting gifts from clients, accepting literary rights as a fee prior to the conclusion of a matter, providing financial assistance to clients, agreements prospectively limiting the lawyer’s malpractice liability, and others. Answer C is the best choice because the situation described does not fall under one of the specific situations under Model Rule 1.8.
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