Multistate Professional Responsibility Exam Practice Question
Pat, an attorney, is representing a seller in negotiations for a building sale. The building has a known structural defect that weakens its foundation. The buyer’s lawyer asks whether the foundation is secure. Pat’s client instructs Pat to respond that the building is structurally sound. Pat knows this statement is not accurate. What is the most appropriate step for Pat to take?
Pat should withdraw from the representation at once without further discussion.
Pat cannot knowingly present a false statement of fact and should advise against making it.
Pat can deliver the misleading statement to ensure the best outcome in the negotiation.
Pat can rely on the client’s instruction because Pat is not responsible for verifying the defect.
An attorney cannot knowingly deliver a false statement about a critical issue when negotiating. Misrepresentation of a material fact violates ethical standards. Even if the client presses for a misleading statement, the lawyer must refrain from transmitting false information. Other responses suggesting that Pat can rely on the client’s instruction or automatically withdraw overlook the obligation to avoid deception and to consult with or advise the client about lawful methods of negotiation. Stating that Pat may make the statement for strategic benefit also fails because it disregards professional rules prohibiting material misrepresentations.
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What is the significance of material misrepresentation in negotiations?
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What ethical obligations does an attorney have when faced with a client’s instruction to misrepresent facts?
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What might be the consequences for Pat if he chooses to deliver the misleading statement?