Crucial Exams

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 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

  • 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 no liability concern.

Multistate Professional Responsibility Exam
Competence, legal malpractice, and other civil liability
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