Multistate Professional Responsibility Exam Practice Question
A law firm and an associate sign an agreement stating that if the associate practices within a certain region after leaving, the associate must surrender fees already earned. Which statement best describes whether this provision complies with rules governing lawyer practice?
The agreement is enforceable due to the firm’s training outlays and investment in the associate
The provision is permissible if it is supported by the firm’s business interests, and it helps prevent client confusion
Whether the provision is enforceable depends on the statutes of the applicable state.
This provision is not permissible because professional rules forbid clauses that penalize a lawyer’s continued practice, apart from certain retirement contexts
Professional guidelines prohibit agreements that limit a lawyer’s freedom to practice once a relationship ends, except in narrow situations related to retirement arrangements or settling a dispute. The correct answer acknowledges the impermissibility of broad limitations or penalties that discourage competition or client choice. Answers that suggest the restriction is acceptable are incorrect because they endorse an unethical barrier preventing clients from freely accessing departing lawyers.
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Why are agreements restricting a lawyer’s right to practice after leaving a firm generally prohibited?
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How do these rules protect clients' rights?
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Multistate Professional Responsibility Exam
Regulation of the legal profession
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