Multistate Professional Responsibility Exam Practice Question
Lee represents a client, Elena, in licensing matters. Lee proposes that they jointly purchase commercial equipment. Lee drafts the sales contract and outlines interest fees that benefit Lee’s investment. Elena signs without a suggestion to consult another attorney. Which statement is accurate regarding Lee’s obligations?
Lee must ensure Elena has a fair chance to evaluate terms, is encouraged to consider separate counsel, and grants written consent
Lee does not violate any rules by simply splitting costs with Elena
Lee’s smaller financial contribution to the contract relaxes disclosure requirements
Lawyers have special ethical obligations when entering into a deal with a client. The deal’s terms must be reasonable, explained to the client in a manner that the client understands, and the client should be advised to consult separate counsel. The client’s written consent is required. One answer describes this properly. Others disregard or minimize the requirement to disclose key terms and provide an opportunity for the client to seek external advice.
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What are the specific ethical obligations lawyers have when representing clients in business transactions?
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What is the importance of a client consulting separate counsel during a transaction?
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What are the consequences for a lawyer failing to meet these obligations?