A paralegal worked for a three-attorney law firm. As a long-time employee of the firm, the paralegal had become acquainted with many of the firm’s clients, including representatives of several corporate clients. After several years driving the same car, the paralegal decided it was time to purchase a new car and began visiting dealerships. One of the firm’s clients was a car dealership, and she stopped by the client’s premises to look at cars. While at the dealership, the owner and president of the dealership recognized her and offered to give her a fifty-percent discount on a brand new car. Can the paralegal accept the offer without doing anything further?
Explanation
Answer: D - No, because the Model Rules prohibit entering business transactions with clients unless the client gives informed consent in writing. A lawyer may not enter into a business transaction with a client unless the terms of the transaction are fair and reasonable to the client, the terms are fully disclosed in writing, the client is advised to seek advice of independent counsel, and the client gives informed consent in writing. Model Rule 1.8(a). The purpose of this rule is to protect clients against overreaching by lawyers based on their legal skill and position of trust and confidence. Model Rule 1.8, comment 1. “A paralegal must not . . . take any actions that attorneys may not take.” NALA Code, Canon 1. Answer D is the best choice because a fifty-percent discount on a new car is unlikely to be fair and reasonable to the client/car dealer and the client has not consented after disclosure and having been advised to seek independent counsel. Answer C is not the best choice because no such rule exists in the Model Rules. Answer B is simply false. Answer A is not the best choice because Model Rule 1.8(a) does apply to paralegals.
