Multistate Professional Responsibility Exam Practice Question
An attorney helped form a start-up and prepared a letter describing the company’s legal compliance for a potential investor, who was not represented by the attorney. The investor relied on the letter and provided funding. It later turned out many statements in the letter were inaccurate, and the investor is seeking damages from the attorney. Which answer is BEST?
There is no liability concern.
An attorney does not uphold a duty to individuals outside the client relationship, even if they rely on details about the company
General disclaimers in a letter reduce exposure to individuals who rely on the statements
There is a duty to a nonclient if the lawyer provided details knowing the nonclient would rely on them and the nonclient was harmed by inaccurate statements
A lawyer is responsible when they provide information to a nonclient knowing the nonclient will rely on it, and the nonclient suffers harm from a misstatement. Disclaimers reduce risk but do not eliminate liability if the lawyer is aware the information will be used by a nonclient. The other proposals that disclaimers eliminate accountability or that attorneys do not have responsibilities to nonclients are inconsistent with recognized doctrines regarding the duty of care for foreseeable recipients of legal opinions.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What constitutes a duty of care for lawyers to nonclients?
Open an interactive chat with Bash
Do disclaimers in legal documents fully protect attorneys from liability?
Open an interactive chat with Bash
What is the difference between a lawyer's duty to clients and nonclients?
Open an interactive chat with Bash
Multistate Professional Responsibility Exam
Competence, legal malpractice, and other civil liability
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
Bar Prep Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
3 Month Pass
$299.99
$99.99/mo
One time purchase of $299.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$399.99
One time purchase, Good for life.
What You Get
All Bar Prep Package plans include the following perks and exams .