Multistate Professional Responsibility Exam Practice Question
Kim is negotiating a licensing agreement for a client’s new software. Kim is also developing a separate software product that competes with the client’s technology. What is the proper step under ethics rules in this situation?
Explain the concern, obtain the client’s informed consent in writing, or end the representation.
Do nothing because the lawyer’s venture and the client’s licensing deal involve different entities.
Stop representing the client even if the client is willing to continue.
A lawyer must address personal conflicts that compromise the duty of loyalty. Disclosure of the situation and informed client consent may resolve the conflict, or the lawyer may need to withdraw if the client does not consent. One answer is incorrect because it ignores the need to tell the client about the competing venture. Another answer is incorrect because ethical rules do not force a lawyer to exit every time a personal interest is involved if informed consent is available.
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Multistate Professional Responsibility Exam
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