Multistate Professional Responsibility Exam Practice Question
Lawyer Lara invests personal funds in an event-planning corporation and receives a profit share. She currently represents the corporation in negotiating new supplier contracts, which may boost her earnings. What approach best addresses her obligations under professional conduct rules regarding personal interest conflicts?
Call the ethics hotline.
She withdraws from representing the corporation if a personal financial gain arises
She continues the representation without disclosing her financial interest because the matter pertains to business decisions rather than legal advice
She addresses the conflict by notifying the client of her financial interest and obtains written consent if she can still serve the client effectively
Disclosing a personal stake to the client and obtaining written consent is essential when a lawyer’s financial interest may affect objective judgment. Professional conduct rules permit continued representation if the lawyer reasonably believes the representation will not be compromised and the client agrees in writing. Ceasing representation is not mandatory unless there is no way to provide diligent and loyal service. Ignoring the conflict leaves the lawyer vulnerable to breaching ethical duties.
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What constitutes a conflict of interest for lawyers?
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