Multistate Professional Responsibility Exam Practice Question
Katherine, an attorney, is contacted by a local group offering to connect her with new clients. They propose different payment methods. Which one is permissible?
Paying a portion of the fees that are earned to the group after a referred client agrees to representation
Covering a service fee that is returned in scenarios where introductions fail to produce new representation
Paying a small amount for contact details of new clients along with a fee for featuring the attorney’s profile
Paying an annual membership fee that stays consistent and avoids linking the cost to how many individuals sign on
Membership fees that remain stable without being tied to specific client engagements can be acceptable. The other options create direct links between payment and the volume or success of client referrals, which can raise legal and ethical concerns about improperly compensating for referrals.
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What are the ethical guidelines around attorney referral fees?
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What are the implications of not following the referral fee guidelines?
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How do fixed membership fees differ from contingent referral fees?