A paralegal works for a small three-attorney law firm that provides legal services to small-and medium-sized businesses. The paralegal is heavily involved with the formation and maintenance of corporations and limited liability companies. One day, a call from a potential client is transferred to the paralegal. The potential client is interested in forming a business and is not sure whether she needs a corporation or a limited liability company, but states that she wants to hire the law firm. The paralegal says, “I’m sure we can help you. Generally, the cost runs between $500 and $1,000. Can I send you one of our contracts?” Has the paralegal engaged in any prohibited activity or conduct?
Explanation
Answer: A - Yes, because accepting cases and setting fees is conduct in violation of rules and law prohibiting the unauthorized practice of law. Two of the acts prohibited under unauthorized practice of law rules and statutes are accepting cases and setting fees. In addition, a paralegal cannot establish attorney-client relationships or set fees under the NALA Code of Ethics and Professional Responsibility, Canon 3. Answer A is the best choice because it correctly states that the paralegal’s conduct is prohibited as unauthorized practice of law. Answer B is not the best choice authority from an employer does not overcome the unauthorized practice of law issue. Answer C is not the best choice because, even if the fee information was standard, the paralegal’s response indicated acceptance of the potential client’s case. Answer D is not the best choice because supervision by an attorney does not overcome the unauthorized practice of law problem.
