Multistate Professional Responsibility Exam Practice Question
An attorney in a small firm meets with a local consultant who promises to bring new clients in exchange for a portion of each legal fee. The attorney is considering whether to sign this proposal. Which statement best describes the ethical concern surrounding this arrangement?
It is not acceptable because the potential client has not approved of the fee split
It is acceptable if the consultant is paid whenever someone hires the attorney
It is acceptable if the attorney provides an explanation about any financial arrangement to each client
It does not align with professional standards because it involves sharing fees with a nonlawyer based on case outcomes
Professional standards prohibit an attorney from sharing fees with a nonlawyer, especially if the compensation is tied to each case’s proceeds. Even if a client knows about the arrangement, the fundamental prohibition remains. The consultant’s expertise or any client disclosures do not resolve the issue. Payment of a reasonable cost for general advertising is allowed, but linking a consultant’s payment to the attorney’s fee for each new client is not.
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