IX. Safekeeping Funds & Other Property

2.

Attorney represented Client in a personal injury action against the driver of the car in which Client was injured while a passenger. The personal injury action was settled, and Attorney received a check in the amount of $10,000 payable to Attorney. Attorney deposited the check in her Clients' Trust Account. One day later, Attorney received a letter from Bank, which had heard of the settlement of the personal injury lawsuit. Bank informed Attorney that Client had failed to make his monthly mortgage payments for the last three months and demanded that Attorney immediately release $900 of the proceeds of the settlement to Bank or Bank would institute mortgage foreclosure proceedings against Client. Attorney informed Client of Bank's letter. Client responded: "I don't care what Bank does. The property is essentially worthless, so let Bank foreclose. If Bank wants to sue me, I'll be easy enough to find. I don't think they'll even bother. You just take your legal fees and turn the rest of the proceeds over to me." Is Attorney subject to discipline if she follows Client's instructions?

Yes, if Client does not dispute the $900 debt to Bank.
Yes, because Attorney knew that client was planning to force Bank to sue him.
No, unless Attorney had reason to believe that Client would not have sufficient funds to pay any subsequent judgment obtained by Bank.
No, because Bank has no established right to the specific proceeds of Client's personal injury judgment.

Correct Answer

A. No, because Bank has no established right to the specific proceeds of Client's personal injury judgment.

Explanation

A lawyer owes a duty to safekeep property to the client, and third parties with legitimate interests, such as a client's creditor who has a lien on funds recovered from a personal injury action, and placed in the lawyer's trust account. A lawyer should protect third-party claims against wrongful interference by the client, and not disburse money to the client, unless sufficient funds remain to satisfy the third party's claim. Here, Attorney is not subject to discipline for following Client's instructions because Bank has not commenced any foreclosure proceedings for the past due mortgage payments. Bank does not have any legitimate interests in the personal injury proceeds.

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3.

Client telephoned Attorney, who had previously represented Client. Client described a problem on which he needed advice and made an appointment for the following week to discuss the matter with Attorney. Prior to the appointment, Attorney performed 5 hours of preliminary research on Client's problem. At the end of the appointment, Client agreed that Attorney should pursue the matter, agreed to a fee of $100 per hour, and gave Attorney a check for $5,000 to cover the 5 hours already worked and as an advance on further fees and expenses. Attorney gave the check to the office bookkeeper with the directions to "Deposit the check in the Clients' Trust Account and immediately transfer $3,000 to our General Office Account to cover the 5 hours of research already conducted plus the 25 additional hours I'll spend on it next week." At that time, Attorney reasonably believed that Attorney would spend 25 additional hours on the case. The bookkeeper followed these directions. The next week, Attorney worked diligently on the matter for 23 hours. Reasonably believing that no significant work remained to be done on the matter, Attorney directed the bookkeeper to transfer $200 from the General Office Account to the Clients' Trust Account. Attorney then called Client and made an appointment to discuss the status of the matter. Is Attorney subject to discipline?

Yes, because Attorney accepted legal fees in advance of performing the work.
Yes, because Attorney transferred funds for unearned fees to the General Office Account.
No, because Attorney transferred the $200 owed to Client from the General Office Account to the Clients' Trust Account.
No, because Attorney reasonably believed that Attorney would spend 25 additional hours on the case.

Correct Answer

A. Yes, because Attorney transferred funds for unearned fees to the General Office Account.

Explanation

MR 1.15(c) requires a lawyer to "deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred." Since Attorney had earned only $500, for five hours of work, at the time of receiving Client's check, only $500 should have been withdrawn from the trust account and placed in the General Office Account.

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4.

Attorney represented Plaintiff, who was the plaintiff in litigation that was settled, with Plaintiff's approval, for $25,000. Attorney received a check in that amount from Defendant, payable to Attorney's order. Attorney endorsed and deposited the check in Attorney's Clients' Trust Account. Attorney promptly notified Plaintiff and billed Plaintiff $5,000 for legal fees. Plaintiff disputed the amount of the fee and wrote Attorney, stating, "I will agree to pay $3,000 as a reasonable fee for the work you did, but I will not pay anything more than that." It is proper for Attorney to: I. retain the entire $25,000 in Attorney's Clients' Trust Account until the fee dispute is settled. II. send Plaintiff $20,000, transfer $3,000 to Attorney's office account, and retain $2,000 in Attorney's Clients' Trust Account until the dispute is settled. III. send Plaintiff $20,000 and transfer $5,000 to Attorney's office account.

I only
II only
I and II, but not III
I, II, and III

Correct Answer

A. II only

Explanation

"In general, a lawyer must hold funds and property of clients or third parties separate from the lawyer's own property [MR 1.15(a)]. When two or more persons (one of whom may be the lawyer) claim interest in the client's property, the lawyer must keep it separate until the dispute is resolved. However, the lawyer must promptly distribute all portions of the property not in dispute [MR 1.5(e)]. II is proper because Plaintiff agreed to pay Attorney $3,000 so Attorney is able to transfer these earned fees to Attorney's office account. However, Attorney billed Plaintiff $5,000 so $2,000 is in dispute and must be retained in the Clients' Trust Account until the dispute is resolved. Attorney, however, must also distribute to Plaintiff the remaining $20,000 that is not in dispute.
"

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5.

Attorney, who represented Plaintiff, received a check from Deft payable to Attorney's order in the sum of $10,000 in settlement of Plaintiff's claim against Deft. Plaintiff had previously paid Attorney a fee so no part of the $10,000 was owed to Attorney. Which of the following would be proper? I. Endorse the check and send it to Plaintiff II. Deposit the check in Attorney's personal bank account and send Attorney's personal check for $10,000 to Plaintiff III. Deposit the check in a Clients' Trust Account, advise Plaintiff, and forward a check drawn on that account to Plaintiff

I only
III only
I and III, but not II
I, II, and III

Correct Answer

A. I and III, but not II

Explanation

"pon receiving funds or other property in which a client or third person has interest, the lawyer must promptly notify the client or third person [MR 1.15(d)]. A lawyer must promptly deliver to the client or third person any funds or other property the client or third person is entitled to receive, and upon request by the client or third person, must promptly render a full accounting regarding such property [MR 1.15(d)]. In general, a lawyer must hold funds and property of clients or third persons in a client trust account, separate from the lawyer?s own property [MR 1.15(a)]. Complete records of all account funds and property in a client trust account must be kept by the lawyer for five years after representation. The lawyer may withdraw from the client trust account only fees earned or expenses incurred [MR 1.15(c)].
I is proper because no part of the $10,000 belongs to Attorney. Upon receiving $10,000 belonging to Client, Attorney must promptly notify and deliver these funds to Plaintiff.
II is not proper because Attorney must not commingle funds belonging to Client by depositing the funds in Attorney?s personal bank account.
III is also proper because Attorney deposits the $10,000 in a Clients? Trust Account, separate from Attorney?s own property, and forwards the funds drawn on the account to Plaintiff."

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6.

Deft retained Attorney to appeal Deft's criminal conviction and to seek bail pending appeal. The agreed fee for the appearance on the bail hearing was $50 per hour. Attorney received $800 from Deft of which $300 was a deposit to secure Attorney's fee and $500 was for bail costs in the event that bail was obtained. Attorney maintained two office bank accounts: a "Fee Account," in which all fees were deposited and from which all office expenses were paid, and a "Clients' Fund Account." Attorney deposited the $800 in the "Clients' Fund Account" the week before the bail hearing. Attorney expended six hours of time on the bail hearing. The effort to obtain bail was unsuccessful. Dissatisfied, Deft immediately demanded return of the $800. It is now proper for Attorney to:

Transfer the $800 to the "Fee Account."
Transfer $300 to the "Fee Account" and leave $500 in the "Clients' Fund Account" until Attorney's fee for the final appeal is determined.
Transfer $300 to the "Fee Account" and send Deft a $500 check on the "Clients' Fund Account."
Send Deft a $500 check and leave $300 in the "Clients' Fund Account" until the matter is resolved with Deft.

Correct Answer

A. Send Deft a $500 check and leave $300 in the "Clients' Fund Account" until the matter is resolved with Deft.

Explanation

When two or more persons (one of whom may be the lawyer) claim interest in the client?s property, the lawyer must keep it separate until the dispute is resolved. However, the lawyer must promptly distribute all portions of the property not in dispute [MR 1.15(e)].Here, Attorney received $800 from Deft of which $300 was a deposit to secure Attorney?s fee and $500 was for bail costs in the event bail was obtained. The agreed fee for the appearance on the bail hearing was $50 per hour. Attorney expended six hours of time on the bail hearing. The effort to obtain bail was unsuccessful. Deft demanded return of $800. As such, Attorney must return the $500 undisputed amount, and keep the $300 disputed amount in the Clients? Fund Account until the parties resolve the dispute.

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7.

Attorney, representing Client, with Client's approval settled a claim against Defendant for $60,000. The settlement agreement provided that one-half would be paid by Insco, Defendant's primary insurance carrier, and one-half by Sureco, a co-insurer. Attorney's agreed fee was 30% of the amount of the settlement. Attorney received Insco's check for $30,000 and a letter from Sureco advising that its check would be sent in two weeks. Attorney promptly advised Client and deposited the $30,000 in her Clients' Trust Account. Client demanded that Attorney send him the entire $30,000 and take her fee out of the funds to be received from Sureco. Which of the following would now be proper for Attorney? I. Send Client $30,000. II. Send Client $21,000 and retain $9,000 in her Clients' Trust Account. III. Send Client $21,000 and transfer $9,000 to her personal account.

I only
I and II, but not III
I and III, but not II
I, II, and III

Correct Answer

A. I and II, but not III

Explanation

"In general, a lawyer must hold funds and property of clients or third parties separate from the lawyer's own property [MR 1.15(a)]. When two or more persons (one of whom may be the lawyer) claim interest in the client's property, the lawyer must keep it separate until the dispute is resolved. However, the lawyer must promptly distribute all portions of the property not in dispute [MR 1.5(e)]. I is proper because if the total settlement is $60,000, the total owed to Client is $42,000. Attorney's fees are $18,000 (.30 * $60,000 = $18,000). The $30,000 belongs to Client. II is proper because only one of the insurance companies paid. If the other insurance company does not pay, the amount of the settlement is $30,000. If Attorney sends the entire $30,000 to Client, Attorney may end up not getting any fees if Sureco does not pay. The $9,000 (.30 * $30,000) is in dispute so it is proper for Attorney to keep it in the Clients' Trust Account. III is not proper because the $9,000 is in dispute. As such, Attorney may not transfer $9,000 to her personal account until the dispute is resolved.
"

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8.

Attorney and Client entered into a written retainer and hourly fee agreement that required Client to pay $5,000 in advance of any services rendered by Attorney and which required Attorney to return any portion of the $5,000 that was not earned. The agreement further provided that Attorney would render monthly statements and withdraw her fees as billed. The agreement was silent as to whether the $5,000 advance was to be deposited in Attorney's Clients' Trust Account or in a general account. Attorney deposited the entire fund in her Clients' Trust Account, which also contained the funds of other persons which had been entrusted to Attorney. Thereafter, Attorney rendered monthly progress reports and statements for services to Client after services were rendered, showing the balance of Client's fee advance. However, Attorney did not withdraw any of the $5,000 advance until one year later when the matter was concluded to Client's complete satisfaction. At that time, Attorney had billed Client reasonable legal fees of $4,500. Attorney wrote two checks on her Clients' Trust Account: one to herself for $4,500, which she deposited in her general office account, and one for $500 to Client. Was Attorney's conduct proper?

Yes, because Attorney deposited the funds in her Clients' Trust Account.
Yes, because Attorney rendered periodic and accurate billings.
No, because Attorney's failure to withdraw her fees as billed resulted in an impermissible commingling of her funds and Client's funds.
No, because Attorney required an advanced payment against her fee.

Correct Answer

A. No, because Attorney's failure to withdraw her fees as billed resulted in an impermissible commingling of her funds and Client's funds.

Explanation

A lawyer may collect a fee in advance in the form of a retainer, but unless the advance payment is a true retainer to reserve services, the lawyer must return any unearned portion. In general, a lawyer must hold funds and property of clients or third parties separate from the lawyer's own property [MR 1.15(a)]. The lawyer may withdraw from the client trust account only fees earned or expenses incurred [MR 1.15(c)]. Here, Attorney left in the Clients' Trust Account earned fees, and did not withdraw them for a year. This was a commingling of Client funds with Attorney's own personal property.

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9.

Attorney practices law in a state that has experienced a business recession and where several banks have failed and others are severely pressed to preserve their solvency. Attorney maintains a Clients' Trust Account in Bank and that account is insured by the Federal Deposit Insurance Corporation against losses up to $100,000. Attorney also maintains his regular office account in the same bank and that account is insured to $100,000. During a particularly busy time, Attorney's bookkeeper told Attorney that the balance in the Clients' Trust Account had increased to $150,000. The bookkeeper noted that the office account had a balance of $30,000. Which of the following courses of action by Attorney would be proper? I. Leave the Clients' Trust Account as is if the balance is likely to decrease to less than $100,000 within the next ten days. II. Open another Clients' Trust Account in another bank and transfer some funds to the second Clients' Trust Account to maintain a fully insured balance in both accounts. III. Temporarily transfer $50,000 from the Clients' Trust Account to the office account so the balance in both accounts is fully within insured limits.

I only
II only
I and II, but not III
II and III, but not I

Correct Answer

A. II only

Explanation

The lawyer must safeguard, account for, client property. Property must be kept safe [MR 1.15]. Here, there is a risk of loss for $50,000 of clients' funds for not being insured with Bank. To prevent this loss, Attorney should open another Clients' Trust Account in another bank so the $50,000 is insured against risk of loss.

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10.

Attorney represented Client on a minor personal injury claim against Driver, an uninsured motorist. Attorney represented Client on a 30% contingent fee basis. Pursuant to a negotiated settlement in the amount of $2,000, Driver agreed to send Attorney a $100 check, made payable to Attorney, in each of the ensuing twenty months. Which of the following dispositions of each monthly check would be proper for Attorney? I. Deposit the check into her office account and immediately write Client a check for $70 from that account. II. Deposit the check into a separate account established for Client and immediately request Client to pay Attorney $30. III. Deposit the check into a trust account in which funds belonging to all Attorney's clients are deposited and immediately write Client a check for $70 and herself a check for $30 from that account.

II only
III only
I and II, but not III
II and III, but not I

Correct Answer

A. II and III, but not I

Explanation

In general, a lawyer must hold funds and property of clients or third persons separate from the lawyer's own property [MR 1.15(a)]. Upon receiving funds or other property in which a client or third person has an interest, the lawyer must promptly notify the client or third person [MR 1.15(d)]. A lawyer must deliver promptly to the client or third person any funds or other property the client or third person is entitled to receive and, upon request by the client or third person, must promptly render a full accounting regarding such property [Id.]. I is not proper because Attorney should not deposit the check into an office account. Upon receiving funds in which Client has an interest, Attorney must hold the funds separate from Attorney's own property. II is proper because Attorney does not commingle funds in which Client has an interest with Attorney's own property. III is proper because Attorney does not commingle funds in which Client has an interest with Attorney's own property, and Attorney promptly delivers Client's funds to Client, and earned fees to Attorney.

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11.

Client, a new client of Attorney, has asked Attorney to write a letter recommending Client's nephew for admission to the bar. Client has told Attorney that he has no direct contact with the nephew, but that Client's sister (the nephew's mother) has assured Client that the nephew is industrious and honest. Which of the following would be proper for Attorney? I. Write the letter on the basis of Client's assurance. II. Write the letter on the basis of Client's assurance if Attorney has no unfavorable information about the nephew. III. Make an independent investigation and write the letter only if Attorney is thereafter satisfied that the nephew is qualified.

Yes, unless the state offers free continuing legal education courses.
Yes, if Gamma independently undertakes continuing study and education in the law.
No, because Gamma cannot maintain competence without attending continuing legal education courses.
No, unless Gamma obtains malpractice insurance.

Correct Answer

A. Yes, unless the state offers free continuing legal education courses.

Explanation

A lawyer should always keep up-to-date about changes in the law through continuing education and self-education [MR 1.1, cmt. [6]]. The CLE requirement may be met either by attending approved courses or completing any other CLE approved for credit. Self-study, teaching, writing for CLE publications, participation in educational activities involving the use of computer-based resources, and in-office law firm CLE efforts may also be considered for credit.

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12.

State does not require lawyers to participate in continuing legal education courses. Attorneys Alpha, Beta, and Gamma, all lawyers recently admitted to practice, formed a law partnership in State. As they considered what expenses the partnership would pay on behalf of each lawyer, a majority decided that the firm would not pay for continuing legal education courses since they were not required by State. Gamma, who wanted reimbursement for continuing legal education courses, angrily said, \Fine. I won't attend any continuing legal education courses.\" Is it proper for Gamma to refuse to attend any continuing legal education courses?"

III only
I and II, but not III
I and III, but not II
I, II, and III

Correct Answer

A. I and II, but not III

Explanation

Applicants for admission to the bar, and lawyers in connection with a bar admission application or a disciplinary matter, must not knowingly make a false statement of material fact, fail to disclose a fact necessary to correct a misapprehension, or knowingly fail to respond to a lawful demand for non-confidential information [MR 8.1]. A lawyer who writes a letter of recommendation for a bar candidate or who is asked by bar authorities for information about a bar candidate is subject to the same rule [MR 8.1, cmt. [1]]. III is proper. Only after an independent investigation into nephew?s background can Attorney provide a personal opinion so as to not knowingly make a false material fact regarding nephew's qualifications.

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13.

Alpha is a member of the bar in State First and is also licensed as a stockbroker in State Second. In his application for renewal of his stockbroker's license in State Second, Alpha knowingly filed a false financial statement. Is Alpha subject to discipline in State First for so doing?

Yes, because his actions involve dishonesty or misrepresentation.
Yes, but only if he is first convicted of a criminal offense in State Second.
No, because his action was not in his capacity as an attorney.
No, because his action was not in State First.

Correct Answer

A. Yes, because his actions involve dishonesty or misrepresentation.

Explanation

Under MR 8.4(c), it is professional misconduct for a lawyer to engage in any conduct involving dishonesty, fraud, deceit, or misrepresentation. Fraud means conduct that (1) is fraudulent under the substantive or procedural law of the applicable jurisdiction and (2) has a purpose to deceive. Here, Alpha?s willful filing of a false financial statement violates MR 8.4(c).

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14.

Attorney is a sole practitioner whose practice is largely in the areas of tax, wills, estates, and trusts. Attorney learned of a new Internal Revenue Service (IRS) regulation that probably affects the trust provisions in a will she prepared for Testatrix two years ago. Attorney has not represented Testatrix since she drew the will. Is Attorney subject to discipline if she calls Testatrix and advises her of the new IRS ruling and the need to revise the will?

Yes, if Attorney has any reason to believe that Testatrix has another lawyer.
Yes, because Attorney would be soliciting legal business from a person who is not a current client.
No, provided Attorney does not thereafter prepare a new will for Testatrix.
No, because Testatrix is a former client of Attorney.

Correct Answer

A. No, because Testatrix is a former client of Attorney.

Explanation

A lawyer has the right to solicit former clients for additional legal services [MR 7.3(a)].Here, Attorney drew up a will for Testatrix and the recent tax law changes made it advisable to change the will. As such, Attorney has the right to initiate in person contact with a former client, and suggest updating the will.

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15.

Judge Alpha has been assigned to try a criminal prosecution by State against Deft. Ten years previously, Alpha, while serving as a deputy attorney general in State, initiated an investigation of Deft for suspected criminal conduct. The investigation did not establish any basis for prosecution. None of the matters previously investigated is involved in or affects the present prosecution. Is it proper for Judge Alpha to try the case?

Yes, because none of the matters previously investigated is involved in or affects the present case.
Yes, unless Alpha might be prejudiced against Deft because of the prior investigation.
No, if Alpha had substantial responsibility in initiating the previous investigation of Deft.
No, if Alpha had substantial responsibility in determining that the previous investigation did not establish any basis for prosecution.

Correct Answer

A. Yes, unless Alpha might be prejudiced against Deft because of the prior investigation.

Explanation

Under CJC 2.11(A), a judge must disqualify herself in a proceeding in which her impartiality may reasonably be questioned, including where the judge has a personal bias or prejudice concerning a party or a party?s lawyer.Here, if Judge Alpha is prejudiced against Deft, it is not proper for Judge Alpha to try the case.

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16.

Attorney represented Landlord in a variety of matters over several years. Plaint, an elderly widow living on public assistance, filed suit against Landlord alleging that Landlord withheld without justification the security deposit on a rental unit that Plaint vacated three years ago. She brought the action for herself, without counsel, in small claims court. Attorney investigated the claim and learned that it was legally barred by the applicable statute of limitations, although Plaint's underlying claim was meritorious. Attorney told Landlord of the legal defense, but emphasized that Plaint's claim was just and that, in all fairness, the security deposit should be returned to Plaint. Attorney told Landlord: "I strongly recommend that you pay Plaint the full amount with interest. It is against your long-term business interests to be known in the community as a landlord who routinely withholds security deposits even though the tenant leaves the apartment in good condition. Paying the claim now will prevent future headaches for you." Was Attorney's conduct proper?

Yes, if Landlord did not object to Attorney's advice and paid Plaint's claim.
Yes, because Attorney may refer to both legal and nonlegal considerations in advising a client.
No, unless Attorney's engagement letter informed Landlord that Attorney's advice on the matter would include both legal and nonlegal considerations.
No, because in advising Landlord to pay the full claim, Attorney failed to represent zealously Landlord's legal interests.

Correct Answer

A. Yes, because Attorney may refer to both legal and nonlegal considerations in advising a client.

Explanation

In representing a client, lawyer must exercise independent professional judgment and render candid advice. In rendering advice, a lawyer may refer not only to law, but also to other considerations such as moral, economic, social, and political factors that may be relevant to the client?s situation [MR 2.1, cmt. [2]].In this case, Attorney?s legal advice referred to legal and business interests of Landlord and, as such, there is nothing improper about Attorney?s conduct.

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17.

Attorney is a member of the bar and a salaried employee of the trust department of Bank. As part of his duties, he prepares a monthly newsletter concerning wills, trusts, estates, and taxes which Bank sends to all of its customers. The newsletter contains a recommendation to the customer to review his or her will in light of the information contained and, if the customer has any questions, to bring the will to Bank's trust department where the trust officer will answer any questions without charge. The trust officer is not a lawyer. If the trust officer is unable to answer the customer's questions, the trust officer refers the customer to Attorney. Is Attorney subject to discipline for the foregoing?

Yes, because Attorney is giving legal advice to persons who are not his clients.
Yes, because Attorney is aiding Bank in the unauthorized practice of law.
No, because no charge is made for Attorney's advice.
No, because Attorney is a member of the bar.

Correct Answer

A. Yes, because Attorney is aiding Bank in the unauthorized practice of law.

Explanation

Law–related services are services that might reasonably be performed in conjunction with and, in substance, are related to the provision of legal services and not prohibited as the unauthorized practice of law when provided by a non–lawyer [MR 5.7(b)]. Law–related services include providing title insurance, financial planning, accounting, trust services, real estate counseling, legislative lobbying, economic analysis, social work, psychological counseling, tax preparation, and patent, medical, or environmental consulting [MR 5.7, cmt. [9]]. A lawyer may not assist another person in the unauthorized practice of law [MR 5.5, cmt. [1]]. A bank may not provide legal services to its customers through a salaried lawyer because Banks are not authorized to practice law.Here, the trust officer, a non–lawyer, may provide trust services, a law–related service, without Attorney being subject to discipline, but the newsletter Attorney prepares recommends customers to bring questions on wills to the trust officer. Answering questions on wills is not a law–related service but rather the practice of law. As such, Attorney is aiding Bank in the unauthorized practice of law.

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18.

Alpha & Beta is a large firm that employs over 100 lawyers. Attorney Gamma was recently admitted to practice and was hired as a new associate of Alpha & Beta. Gamma was working late one night when he received a telephone call from his cousin Able. Able said that he was calling from the police station where he had just been arrested for possession of cocaine with intent to distribute. He was permitted to make only one phone call, and Gamma was the only lawyer he knew. Gamma responded that he had no criminal law experience and that Alpha & Beta did not handle criminal cases. Nevertheless, Able pleaded with Gamma to come to the police station and see what he could do to get Able out on bail. Gamma replied that he would do what he could. Gamma went to the police station and using what information he recalled from his criminal law and procedure courses attempted to get Able released on bail. However, as a result of his inexperience, Gamma was unable to secure Able's release that night. The next morning, Gamma found an experienced criminal lawyer for Able, who obtained Able's release within one hour. Was Gamma's conduct proper?

Yes, because neither referral nor consultation was practical under the circumstances.
Yes, because Gamma was a close relative of Able.
No, because Gamma had no special training or experience in criminal cases.
No, because Gamma did not have the requisite level of competence to accept representation in the case.

Correct Answer

A. Yes, because neither referral nor consultation was practical under the circumstances.

Explanation

Under MR 1.1, cmt. [1], factors used to assess the sufficiency of a lawyer's knowledge and skill include whether it is feasible to refer the matter to, or associate or consult with, a lawyer of established competence in the field. In an emergency, a lawyer may give advice or assistance to a client in need, even if he lacks the skill or knowledge ordinarily required, and referral to or consultation with another lawyer is impractical [MR 1.1, cmt. [3]]. The lawyer should limit emergency assistance to that reasonably necessary under the circumstances [Id.].Here, Gamma received a telephone call from Able late at night from a police station. It was not feasible for Gamma to consult with another lawyer at night. Able was arrested at the police station, and provided with just one phone call. Though Gamma lacked experience in criminal law, it was an emergency situation because Able wanted to be released.

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19.

Attorney wants to make it easier for her clients to pay their bills for her fees. Which of the following would be proper for Attorney? I. Accept bank credit cards in payment of Attorney's fees. II. Arrange for clients to obtain bank loans for the purpose of paying Attorney's fees. III. If a case is interesting, suggest that the client give Attorney publication rights concerning the case as partial payment of the fee.

II only
I and II, but not III
I, II, and III
Neither I, II, nor III

Correct Answer

A. I and II, but not III

Explanation

I and II are allowed because a lawyer may collect a fee through a credit card or by arranging a bank loan for a client. III is not allowed because a lawyer may not obtain or negotiate literary or media rights to a portrayal or account regarding a pending representation prior to the conclusion of the representation [MR 1.8(d)].

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20.

Law Firm, a professional corporation with five lawyer shareholders, employs twenty-five additional lawyers. Which of the following is(are) proper? I. Employees who are members of the bar are not made shareholders until they have been with Law Firm ten years. II. Manager, who is the office manager but not a member of the bar, is executive vice president of Law Firm. III. Widow, whose husband was a lawyer shareholder in Law Firm until his death two years ago, continues to hold husband's shares in Law Firm, distributed in his estate, until their child completes a law school education.

I only
I and II, but not III
I and III, but not II
I, II, and III

Correct Answer

A. I only

Explanation

There are no ethical standards that a law firm needs to follow when deciding when (if ever) a lawyer will become a shareholder of a corporate law firm.

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21.

Attorney, who was recently admitted to the bar, has been appointed by the court as counsel for Deft, an indigent defendant charged with a felony. After consulting with Deft and attempting for two days to prepare the case for trial, Attorney became convinced that he lacked the knowledge and experience to represent Deft effectively. Which of the following would be proper for Attorney? I. Request permission of the court to withdraw from representing Deft because Attorney knows that he is not competent to handle the case. II. Request the court to appoint experienced co-counsel and grant a continuance to enable co-counsel to prepare the case. III. Explain the circumstances to Deft and, if Deft consents, proceed to represent Deft alone to the best of Attorney's ability.

I only
I and II, but not III
II and III, but not I
I, II, and III

Correct Answer

A. I and II, but not III

Explanation

"If the lawyer is not competent to handle the representation, she may: (1) decline or withdraw from representation, (2) take action to make herself competent to handle the representation, or (3) associate with competent counsel. The client's consent to representation when an attorney is not competent does not release the attorney from the duty of competence [MR 1.1]. Even if there is good cause to terminate a representation, the lawyer may have to continue representing a client if ordered to do so by a court [MR 1.16(c)]. I is correct because incompetence is good cause for Attorney to request permission of the court to withdraw.II is correct because if Attorney is not competent, Attorney may associate with competent counsel. III is incorrect, however, because Deft's consent to Attorney representing Deft to the best of Attorney's abilities does not release Attorney from the duty of competence.
"

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22.

While an assistant district attorney, Attorney Alpha was in charge of the presentation before a grand jury of evidence that led to an indictment charging thirty-two defendants with conspiracy to sell controlled drugs. Shortly after the grand jury returned the indictments, Alpha resigned as assistant district attorney and became an associate in the law office of Attorney Beta, a sole practitioner. At the time of such association, Beta was the attorney for Deft, one of the indicted co-defendants. Is it proper for Attorney Beta to continue to represent Deft?

Yes, if Alpha does not reveal to Beta any confidence or secret learned while an assistant district attorney.
Yes, because a public prosecutor must make timely disclosure to the defense attorney of any exculpatory evidence.
No, unless Alpha agrees not to participate in the representation of Deft.
No, because Alpha had substantial responsibility for the indictment of Deft.

Correct Answer

A. No, because Alpha had substantial responsibility for the indictment of Deft.

Explanation

A lawyer cannot represent a private party against a government agency in a matter in which the lawyer participated personally and substantially while working for the government, unless the government agency gives its consent, in writing, to the representation [MR 1.11(c)]. As a general rule, when one attorney is disqualified, the whole firm is also disqualified. This is called imputed disqualification [MR 1.10(a)]. Imputed disqualification is based on a presumption that all partners and associates in a firm know about all cases. As such, the knowledge of one lawyer working on a case is imputed to all the others while that lawyer is at the firm [MR 1.10, cmt. [3]].

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23.

Attorney filed an action on behalf of Client for breach of contract. In fact, Client had no legal basis for the suit, but wanted to harass Defendant. In order to induce Attorney to file the action, Client made certain false statements of material fact to Attorney, which Attorney included in the complaint filed against Defendant. At the trial of the case, Client took the stand and testified as set forth in the complaint. The trial court ordered judgment for Client. After entry of judgment, Client wrote Attorney a letter marked "Confidential," in which Client admitted that she had lied to Attorney and had testified falsely in the case. Upon complaint of Defendant, who claimed Attorney had knowingly used false testimony in the case of Client v. Defendant, disciplinary proceedings were instituted against Attorney. Is it proper for Attorney to use Client's letter to Attorney in Attorney's defense in the disciplinary proceedings?

Yes, if it is necessary to do so in order to protect Attorney's rights.
Yes, because Client had committed a fraud on the court in which the case was tried.
No, because Attorney learned the facts from Client in confidence.
No, if disclosure by Attorney could result in Client's prosecution for perjury.

Correct Answer

A. Yes, if it is necessary to do so in order to protect Attorney's rights.

Explanation

"Generally, a lawyer cannot reveal information relating to the representation of a client, including information protected by the attorney–client privilege under applicable law [MR 1.6(a)]. However, disclosure is permitted, but not required, to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client, to establish a defense to a criminal charge or civil claim against the lawyer based upon conduct in which the client was involved, or to respond to allegations in any proceeding, including any disciplinary matter, concerning the lawyer?s representation of the client [MR 1.6(b)(5)], or where a legal claim or disciplinary charge alleges complicity of the lawyer in the conduct of a client or a former client or other misconduct of the lawyer involving representation of the client or a former client, the lawyer may respond to the extent the lawyer reasonably believes necessary to establish a defense. Such a charge can arise in a civil, criminal, disciplinary, or other proceeding and can be based on a wrong allegedly committed by the lawyer against the client or on a wrong alleged by a third person [MR 1.6, cmt. [10]]. The lawyer's right to respond arises when an assertion of such complicity has been made. The lawyer is not required to await the commencement of an action or proceeding that charges such complicity, so that the defense may be established by responding directly to a third party who has made such an assertion. The right to defend also applies where a proceeding commences [Id.] In this case, Client wrote Attorney a letter marked "Confidential." Generally, Attorney cannot reveal this information because it is protected by the attorney–client privilege. However, since Defendant claims Attorney knowingly used false testimony and disciplinary proceedings were commenced against Attorney alleging complicity in the conduct of Client, the Attorney may disclose the "Confidential" letter to defend herself in these disciplinary proceedings.
"

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24.

Judge is presently serving on a state intermediate appellate court. This court, in opinions written by her, has decided several controversial cases in which the court has held that the Fourteenth Amendment to the United States Constitution does not guarantee due process protection to state prison inmates who are disciplined by prison authorities for violating the prison's rules of conduct. Judge is now a candidate for election to a vacancy on the state supreme court. She is vigorously opposed by several organizations concerned with the conditions under which prisoners are incarcerated in the state's prison. Judge is scheduled to be interviewed on television and has been informed that questions will be asked of her concerning those decisions and her attitude on the subject of prisoners' rights. Which of the following is it proper for Judge to say during the interview? I. "I believe that the issues raised by the organizations opposing me are appropriate matters for legislative consideration." II. "In my opinion, incarceration for the commission of a crime carries with it a loss of civil liberties in prison discipline proceedings." III. "I am convinced I was right in those cases and will make the same decision in similar cases in the future."

I only
II only
I and II, but not III
I, II, and III

Correct Answer

A. I only

Explanation

A judge or candidate for judicial office may not engage in political or campaign activity that is inconsistent with the independence, integrity, or impartiality of the judiciary [CJC Canon 4].I acknowledges opposing views and does not insert any personal opinions.

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25.

Attorney was formerly employed by Insurance Company as a lawyer solely to handle fire insurance claims. While so employed she investigated a fire loss claim of Claimant against Insurance Company. Attorney is now in private practice. Assume the claim has not been settled and Claimant consults Attorney and asks Attorney either to represent him or refer him to another lawyer for suit on the claim. Which of the following would be proper for Attorney to do? I. Refuse to discuss the matter with Claimant. II. Represent Claimant. III. Refer Claimant to an associate in her law firm, provided Attorney does not share in any fee. IV. Give Claimant a list of lawyers who Attorney knows are competent and specialize in such claims.

I only
I and II, but not III or IV
I and III, but not II or IV
I and IV, but not II or III

Correct Answer

A. I and IV, but not II or III

Explanation

"A lawyer representing an organization represents the organization as an entity through its duly authorized constituents, but does not represent the individual employees. A lawyer must act in the best interests of the organization. A lawyer who has formerly represented a client in a matter may not thereafter represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client unless the former client consents in writing after consultation [MR 1.9(a)]. As a general rule, when one attorney is disqualified from representing a client, the whole firm is disqualified. This is called imputed disqualification [MR 1.10(a)]. Imputed disqualification is based on the presumption all partners and associates in a firm know about all cases. The knowledge of one lawyer working on a case is imputed to all the others while that lawyer is at the firm [MR 1.10, cmt. [3]]. I and IV are proper because lawyers in the United States are generally free to refuse service to any person for any reason. A lawyer may refer clients to another lawyer. II is not proper because as a former employee of Insurance Company, Insurance Company was Attorney?s former client. While an employee of Insurance Company, Attorney worked on the same matter, which is not settled, and the subject of Claimant's suit. Attorney may not represent Claimant, who has interests adverse to Insurance Company, unless Insurance Company consents in writing after consultation.III is not proper because an associate in Attorney's firm is disqualified from representing Claimant based on imputed disqualification.
"

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26.

Attorney was formerly employed by Insurance Company as a lawyer solely to handle fire insurance claims. While so employed she investigated a fire loss claim of Claimant against Insurance Company. Attorney is now in private practice. Assume that the original claim was settled. One year after Attorney left the employ of Insurance Company, Claimant slipped and fell in Insurance Company's office. Claimant now asks Attorney to represent him or refer him to another lawyer for suit on the \slip and fall\" claim. Which of the following would be proper for Attorney to do? I. Refuse to discuss the matter with Claimant. II. Represent Claimant. III. Give Claimant a list of lawyers who Attorney knows are competent and specialize in such claims."

I only
I and II, but not III
I and III, but not II
I, II, and III

Correct Answer

A. I, II, and III

Explanation

"Lawyers in the United States are generally free to refuse service to any person for any reason. A lawyer may refer clients to another lawyer. A lawyer representing an organization represents the organization as an entity through its duly authorized constituents, but does not represent the individual employees. A lawyer must act in the best interests of the organization. A lawyer who has formerly represented a client in a matter may not thereafter represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client unless the former client consents in writing after consultation [MR 1.9(a)]. I is proper, but II and III are also proper, so answer choice A is not the best choice.II is proper because as a former employee of Insurance Company, Insurance Company was Attorney's former client. Attorney may not represent Claimant relating to the fire loss claim, which Attorney investigated, and where Claimant has interests adverse to Insurance Company, unless Insurance Company consents in writing after consultation. The fire loss claim, however, has been settled and Claimant is asking Attorney to represent Claimant in the "slip and fall" claim, not the same or a substantially related matter to any work Attorney did while employed by Insurance Company. Therefore, Attorney can represent Claimant.
"

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27.

Client has retained Attorney to represent Client in a contract suit. Attorney's retainer agreement provided that Attorney's fees would be based on a fixed hourly rate, payable at the end of each calendar month. Two months before trial, Client fell behind in the payment of Attorney's monthly billing for fees. Attorney included the following statement on Attorney's last billing to Client: "Your account is more than thirty days past due. If amounts due are not paid promptly in accordance with our agreement, I will terminate the representation. If you cannot pay the amount due, I will accept an assignment of your cause of action as security for your fee to me." Two weeks after the last billing, Attorney telephoned Client and told Client that Attorney would withdraw from representing Client if the bill was not paid within forty-eight hours or adequate security given for its payment. If the bill remains unpaid or unsecured after forty-eight hours, it would be proper for Attorney to: I. upon notice to Client, move the court for permission to withdraw. II. turn Client's file over to another experienced lawyer in town and notify Client that Attorney no longer represents Client. III. accept an assignment of Client's cause of action as security for Attorney's fee.

I only
II only
I and II, but not III
I, II, and III

Correct Answer

A. I only

Explanation

Under MR 1.16(b), withdrawal is permitted if: (1) withdrawal can be accomplished without material adverse effect on the interests of the client, (2) the client fails substantially to fulfill an obligation to the lawyer regarding the lawyer's services (e.g. payment of fees), and has been given reasonable warning that the lawyer will withdraw unless the obligation is fulfilled, (3) the representation will result in an unreasonable financial burden on the lawyer, or has been rendered unreasonably difficult by the client, or (4) other good cause for withdrawal exists. Even if there is good cause to terminate a representation, the lawyer may have to continue representing a client if ordered to do so by a court [MR 1.16(c)]. The court's approval or notice will likely be required if the lawyer is representing the client in pending litigation.Here, Attorney represents Client in a pending contract suit. Though, non–payment of bills may be good cause to withdraw, Attorney may need to give notice to Client that Attorney will obtain an order from the court to withdraw.

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28.

Attorney's advertisement in the local newspaper includes the following information, all of which is true: I. Attorney, B.A., magna cum laude, Eastern College; J.D., summa cum laude, State Law School; LL.M., Eastern Law School. II. My offices are open Monday through Friday from 9:00 a.m. to 5:00 p.m., but you may call my answering service twenty-four hours a day, seven days a week. III. I speak modern Greek fluently. For which, if any, of these statements is Attorney subject to discipline?

III only
I and II, but not III
I, II, and III
Neither I, II, nor III

Correct Answer

A. Neither I, II, nor III

Explanation

Advertising is permitted as long as the communication is not misleading and in accordance with MR 7.1 [MR 7.2]. MR 7.1 permits a lawyer to use any form of public communication about the lawyer's services that is not false or misleading. A lawyer may advertise through written, recorded, or electronic communication, including public media [MR 7.2(a)]. All ads must include the name and office address of at least one attorney or law firm [MR 7.2(c)]. Here, Attorney may advertise through the newspaper, a form of public media. The facts also state that the information in I, II, and III is true. I is proper because it provides Attorney's name and is not false or misleading. II and III are proper because the statements are not false or misleading.

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29.

Alpha represents Defendant in bitter and protracted litigation. Alpha, at Defendant's request, has made several offers of settlement to Plaintiff's lawyer Beta, all of which have been rejected. During a week's recess in the trial, Alpha and Plaintiff were both present at a cocktail party. Plaintiff went over to Alpha and said: "Why can't we settle that case for $50,000? This trial is costing both sides more than it's worth." Which of the following is a proper response by Alpha? I. "I can't discuss the matter with you." II. "If that's the way you feel, why don't you and Defendant get together." III. "I agree. We already have made several offers to settle this matter."

I only
I and II, but not III
II and III, but not I
I, II, and III

Correct Answer

A. I only

Explanation

"In the course of a representation, a lawyer must not communicate about the subject of the representation with a person, whether or not a party to the proceeding, the lawyer knows is represented by another lawyer in the matter, unless the lawyer: (1) has consent of the other lawyer, or (2) is authorized to do so by law [MR 4.2]. The prohibition on communications with a represented person only applies in circumstances where the lawyer knows the person is represented [MR 4.2, cmt. [8]]. MR 4.2 applies even though the represented person initiates or consents to communication. A lawyer must immediately terminate communication with a person if, after commencing communication, the lawyer learns the person is one with whom communication is not permitted by MR 4.2 [MR 4.2, cmt. [3]]. Here, Alpha knows Plaintiff is represented by a lawyer because Alpha has presented settlement offers to Plaintiff's lawyer Beta. Alpha is prohibited from communicating with Plaintiff on the litigation, unless there is consent from Beta or Alpha is authorized by law to do so. Therefore, even though Plaintiff initiated the conversation, Alpha must immediately terminate communication.
"

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30.

The law firm of Alpha and Beta has a radio commercial which states: \Do you have a legal problem? Are you being sued? Consult Alpha and Beta licensed attorneys at law. Initial conference charge is $25 for one hour. Act now and protect your interests. Call at 1234 Main Street; telephone area code (101) 123-4567.\" Are Alpha and Beta subject to discipline for the commercial?"

Yes, because the qualifications of the lawyers are not stated.
Yes, because the radio broadcast may encourage litigation.
No, if all the statements in the radio broadcast are true.
No, unless the radio broadcast is heard outside the state in which they are licensed.

Correct Answer

A. No, if all the statements in the radio broadcast are true.

Explanation

"Advertising is permitted as long as the communication is not misleading and in accordance with MR 7.1 [MR 7.2]. MR 7.1 permits a lawyer to use any form of public communication to advertise the lawyer's services as long as the advertisement is not false or misleading. A lawyer may advertise through written, recorded, or electronic communication, including public media [MR 7.2(a)]. All ads must include the name and office address of at least one attorney or law firm [MR 7.2(c)]. Here, Alpha and Beta may advertise through the radio, a form of public media. Answer choice C states, "if all the statements in the radio broadcast are true." This means none of the statements are false or misleading. The advertisement also provides the name and office address of at least one attorney or law firm. As such, Alpha and Beta would not be subject to discipline for the commercial if all the statements in the radio broadcast are true.
"

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31.

Attorney Alpha represents Client, the plaintiff in a medical malpractice case. Alpha's contract with Client provides for a contingent fee of 20% of the recovery by settlement and 30% if the case is tried, with a total fee not to exceed $50,000. Alpha associated Attorney Beta, a sole practitioner, in the case, with Client's written consent and after full disclosure of the fee agreement between Alpha and Beta. Beta is both a medical doctor and a lawyer and is well qualified by experience and training to try medical malpractice cases. The fee agreement between Alpha and Beta reads as follows: The total fee in this case is 20% of recovery by settlement and 30%, if tried, with a maximum fee of $50,000. Alpha will help with discovery and will be the liaison person with Client. Beta will prepare the case and try it if it is not settled. Alpha and Beta will divide the fee, 40% to Alpha and 60% to Beta. Are Alpha and Beta subject to discipline for their agreement for division of the fee?

Yes, unless Client's consent is in writing.
Yes, because Alpha will not try the case.
No, if the division of the fee between Alpha and Beta is in proportion to actual work done by each.
No, because the total fee does not differ from that contracted for by Alpha with Client.

Correct Answer

A. No, if the division of the fee between Alpha and Beta is in proportion to actual work done by each.

Explanation

"Under MR 1.5(e), a fee can be divided between lawyers who are not in the same firm if, the: (1) division is in proportion to the services performed by each lawyer, (2) client agrees to the arrangement in writing, and (3) total fee is reasonable. Here, two lawyers, Alpha and Beta, of different law firms, arranged to divide fees, with Client?s written consent. If the total fee is reasonable and the division of fee between Alpha and Beta is in proportion to actual work done by each, Alpha and Beta are not subject to discipline.
"

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32.

Attorney Alpha was retained by Client to incorporate Client's business, which previously had been operated as a sole proprietorship. Alpha noticed in Client's file copies of some correspondence from Client to Attorney Beta concerning the possibility of Beta's incorporating Client's business. Alpha questioned Client to make certain that any attorney-client relationship between Beta and Client had been terminated. Client told Alpha, "It certainly has been terminated. When I discussed the matter with Beta six months ago, he asked for a retainer of $1,000, which I paid him. He did absolutely nothing after he got the money, even though I called him weekly, and finally, last week when I again complained, he returned the retainer. But don't say anything about it because Beta is an old friend of my family." Is Alpha subject to discipline if she does not report her knowledge of Beta's conduct to the appropriate authority?

Yes, if Alpha believes Beta clearly was guilty of professional misconduct.
Yes, unless Alpha believes Beta does not usually neglect matters entrusted to him.
No, if Client was satisfied by Beta's return of the retainer.
No, unless Client agrees that Alpha may report the information.

Correct Answer

A. No, unless Client agrees that Alpha may report the information.

Explanation

"Generally, a lawyer cannot reveal information relating to the representation of a client, including information protected by the attorney–client privilege under applicable law [MR 1.6(a)]. A lawyer who has knowledge of a violation of the Rules that raises a question as to any lawyer's honesty, trustworthiness, or fitness as a lawyer must inform the appropriate professional authority [MR 8.3(a)]. A report is not required where it would involve disclosure of confidential information otherwise protected by MR 1.6 [MR 8.3, cmt. [2]]. Here, Alpha discovered the misconduct by Beta from Client's files, information relating to the representation of a client. Alpha does not need to report Beta's violation of the Rules, unless Client agrees. Since Client told Alpha "But don?t say anything about it?," Client does not agree.
"

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33.

Alpha & Beta, a general partnership, is a litigation firm practicing in State. It hires new law school graduates as associates. These new lawyers are largely left to their own resources to practice law. Alpha & Beta accepts many small litigation matters and assigns them to the associates for training purposes. No senior partners are assigned to supervise this work. It is assumed that if an associate needs help on a case, he or she will seek the guidance of a more senior attorney. Client retained Alpha & Beta to pursue a claim for breach of contract against City. Associate, a first year associate, was assigned Client's case. Associate failed to comply with the applicable 30-day notice requirement for filing a complaint against City, and Client lost the chance to recover $5,000 owed to Client by City. When the complaint was dismissed for failure to comply with the notice requirement, Associate instead told Client that the case was dismissed on the merits. Which of the following statements are correct? I. The law firm of Alpha & Beta is subject to discipline for failure to supervise Associate. II. The individual partners of Alpha & Beta are subject to discipline for failure to make reasonable efforts to establish a system providing reasonable assurance that all lawyers in the firm comply with the rules of professional conduct. III. Associate, an unsupervised subordinate lawyer, is subject to discipline for making misrepresentations to Client. IV. Both the law firm of Alpha & Beta and Associate are subject to civil liability for Client's loss.

II and IV, but not I or III
I, III, and IV, but not II
II, III, and IV, but not I
I, II, III, and IV

Correct Answer

A. II, III, and IV, but not I

Explanation

"Partners and supervising attorneys must make reasonable efforts to establish internal policies and procedures to provide reasonable assurance that all attorneys in their employ comply with ethical rules [MR 5.1, cmt. [2]]. The precise measures required to fulfill these obligations depend on the structure and the work of the firm, but should include procedures designed to detect and resolve conflicts of interest, identify dates by which actions must be taken in pending matters so deadlines are not missed, account for client funds and property, and ensure inexperienced lawyers are properly supervised. Supervising attorneys are personally responsible for subordinates' ethical violations if they order or ratify the subordinates' work. A subordinate lawyer must follow the Rules even when acting under the directions of another person [MR 5.2]. An employer is vicariously liable for tortuous acts committed by its employee if the acts occur within the scope of employment. To be within the scope of employment, the conduct need not be actually authorized. A competent lawyer may act incompetently in a client representation, and be subject to civil liability for malpractice. I is incorrect because there are no Rules requiring a law firm to supervise a lawyer. The Rules require the managing lawyers, individual partners, or direct supervising lawyers to supervise Associate.II is correct because the Rules relating to a lawyer who directly supervises, or is a law firm partner or managing lawyer, requires the lawyer to make reasonable efforts to assure the subordinate lawyer adheres to the Rules [MR 5.1(b)]. III is correct because Associate's own ethical duties remain [MR 5.1, cmt. [8], MR 5.2].IV is correct because the law firm, as Associate's employer, is vicariously liable for Client's loss. Associate is personally liable for Client's loss because Associate incompetently failed to comply with a notice requirement.
"

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34.

Attorney Alpha has tried many contested cases before Judge Gamma. Alpha believes the judge is lacking both in knowledge of the law and in good judgment and that Attorney Beta would make an excellent judge. Alpha wishes to defeat Judge Gamma and assist Beta in getting elected. Alpha intends to contribute $5,000 to Beta's campaign. Is it proper for Alpha to do so?

Yes, Alpha may give $5,000 to Beta personally for his campaign.
Yes, if Alpha's contribution to Beta is made anonymously.
No, because Alpha is practicing before the court to which Beta seeks election.
No, unless Alpha gives the $5,000 to a committee formed to further Beta's election.

Correct Answer

A. No, unless Alpha gives the $5,000 to a committee formed to further Beta's election.

Explanation

"A judge or judicial candidate may not personally solicit or accept campaign contributions other than through a campaign committee as authorized by CJC 4.4. A judicial candidate may not personally solicit campaign contributions, except as expressly authorized, and may not personally accept campaign contributions [CJC 4.4, cmt. [1]]. As such, Alpha must give any contributions to Beta?s campaign committee.
"

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35.

Attorney represented Seller in negotiating the sale of his ice cream parlor. Seller told Attorney in confidence that, although the business was once very profitable, recent profits have been stable but modest. As the negotiations proceeded, Buyer appeared to be losing interest in the deal. Hoping to restore Buyer's interest, Attorney stated, "The ice cream business is every American's dream: happy kids, steady profits, and a clear conscience." Buyer bought the ice cream parlor but was disappointed when his own profits proved to be modest. Is Attorney subject to discipline?

Yes, because Attorney made a false statement of fact to Buyer.
Yes, because Attorney exaggerated the profitability of the business.
No, because Attorney represented Seller, not Buyer.
No, because Attorney's statement constitutes acceptable puffing in negotiations.

Correct Answer

A. No, because Attorney's statement constitutes acceptable puffing in negotiations.

Explanation

MR 4.1 prohibits lawyers from making false statements of material facts in negotiations. Under generally accepted conventions in negotiation, however, certain types of statements ordinarily are not taken as statements of material facts. Estimates of price or value are generally not considered to be statements of material facts.

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36.

Attorney Alpha was retained by Passenger, a passenger on a bus, who had been injured in a collision between the bus and a truck. Passenger paid Alpha a retainer of $1,000 and agreed further that Alpha should have a fee of 25% of any recovery before filing suit, 30% of any recovery after suit was filed but before judgment, and 35% of any recovery after trial and judgment. Alpha promptly called the lawyer for the bus company and told him she was representing Passenger and would like to talk about a settlement. Alpha made an appointment to talk to the lawyer for the bus company but did not keep the appointment. Alpha continued to put off talking to the lawyer for the bus company. Meanwhile, Passenger became concerned because she had heard nothing from Alpha. Passenger called Alpha's office but was told Alpha was not in and would not call back. Passenger was told not to worry because Alpha would look after her interests. After ten months had passed, Passenger went to Attorney Beta for advice. Beta advised Passenger that the statute of limitations would run in one week and, with Passenger's consent, immediately filed suit for Passenger. Alpha, upon Passenger's demand, refunded the $1,000 Passenger had paid. Is Alpha subject to discipline?

Yes, unless Alpha's time was completely occupied with work for other clients.
Yes, because Alpha neglected the representation of Passenger.
No, because Passenger's suit was filed before the statute of limitations ran.
No, because Alpha returned the $1,000 retainer to Passenger.

Correct Answer

A. Yes, because Alpha neglected the representation of Passenger.

Explanation

"A lawyer must act with reasonable diligence and promptness in representing a client [MR 1.3]. Under MR 1.3, comments 2–4, a lawyer should especially attend to: (1) controlling workload, (2) avoiding unreasonable delay and procrastination, (3) filing within the statute of limitations, and (4) carrying representation through to completion and ensuring clients know when representation ends. Under MR 1.4(a), in communicating with clients, lawyers must keep the client reasonably informed about the status of the matter, and promptly comply with reasonable requests for information. Competent representation requires the legal knowledge, skill, thoroughness, and preparation necessary for the representation [MR 1.1]. Here, Alpha put off talking to the bus company's lawyer, and did not communicate with Passenger on the status of the case. After ten months passed and the statute of limitations risked running, Passenger had to find another attorney, Beta, to file the suit.
"

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37.

Attorney Alpha filed a personal injury suit on behalf of Plaintiff against Defendant. Defendant was personally served with process. Alpha knows that Defendant is insured by Insco and that Attorney Beta has been retained by Insco to represent Defendant. No responsive pleading has been filed on behalf of Defendant, and the time for filing expired over ten days ago. Is Alpha subject to discipline if Alpha proceeds to have a default judgment entered?

Yes, because Alpha knew that Beta had been retained by Insco to represent Defendant.
Yes, because Alpha failed to extend professional courtesy to another lawyer.
No, because Alpha is properly representing her client's interests.
No, because any judgment will be satisfied by Insco.

Correct Answer

A. No, because Alpha is properly representing her client's interests.

Explanation

"A lawyer must make a reasonable effort to expedite litigation consistent with a client's interests [MR 3.2]. As such, Alpha may proceed with a default judgment if Defendant does file a responsive pleading in a timely fashion.
"

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38.

Attorney is a candidate in a contested election for judicial office. Her opponent, Judge, is the incumbent and has occupied the bench for many years. The director of the state commission on judicial conduct, upon inquiry by Attorney, erroneously told Attorney that Judge had been reprimanded by the commission for misconduct in office. Attorney, who had confidence in the director, believed him. In fact, Judge had not been reprimanded by the commission; the commission had conducted hearings on Judge's alleged misconduct in office and, by a three to two vote, declined to reprimand Judge. Decisions of the commission, including reprimands, are not confidential. Is Attorney subject to discipline for publicly stating that Judge had been reprimanded for misconduct?

Yes, because the official records of the commission would have disclosed the truth.
Yes, because Judge had not been reprimanded.
No, because Attorney reasonably relied on the director's information.
No, because Judge was a candidate in a contested election.

Correct Answer

A. No, because Attorney reasonably relied on the director's information.

Explanation

"Under CJC 4.1(A), a judge or judicial candidate may not knowingly or with reckless disregard for the truth, make a false or misleading statement. Here, Attorney made an inquiry into Judge's reprimand so there was no reckless disregard for the truth. Attorney reasonably relied on the director's information, and did not knowingly, or with reckless disregard for the truth, made a false or misleading statement.
"

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39.

Attorney is a well-known, highly skilled litigator. Attorney's practice is in an area of law in which the trial proceedings are heard by the court without a jury. In an interview with a prospective client, Attorney said, "I make certain that I give the campaign committee of every candidate for elective judicial office more money than any other lawyer gives, whether it's $500 or $5,000. Judges know who helped them get elected." The prospective client did not retain Attorney. Is Attorney subject to discipline?

Yes, if Attorney's contributions are made without consideration of candidates' merits.
Yes, because Attorney implied that Attorney receives favored treatment by judges.
No, if Attorney's statements were true.
No, because the prospective client did not retain Attorney.

Correct Answer

A. Yes, because Attorney implied that Attorney receives favored treatment by judges.

Explanation

"Under MR 8.4(d), it is professional misconduct for a lawyer to state or imply an ability to influence improperly a government agency or official or to achieve results by means that violate the Rules or other law. A judge must uphold and promote the independence, integrity, and impartiality of the judiciary [CJC Canon 1]. A judge or judicial candidate will be responsible for acting at all times in a manner consistent with the independence, integrity, and impartiality of the judiciary [CJC 4.2]. Here, by stating "I make certain that I give the campaign committee of every candidate for elective judicial office more money than any other lawyer gives?Judges know who helped them get elected," Attorney implies an ability to improperly influence the decisions of judges since judges or judicial candidates are not allowed to be influenced by campaign contributions in the administration of justice.
"

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40.

Judge is presiding in a case that has, as its main issue, a complicated point of commercial law. The lawyers have not presented the case to Judge's satisfaction, and Judge believes she needs additional legal advice. Judge's former partner in law practice, Attorney, is an expert in the field of law that is at issue. Attorney has no interest in the case. Is it proper for Judge to consult Attorney?

Yes, because Attorney has no interest in the case.
Yes, if Judge believes that Attorney's advice is needed to serve the interests of justice.
No, unless all parties in the case first give their written consent to Judge's consultation with Attorney.
No, unless Judge informs the parties of Attorney's identity and the substance of Attorney's advice, and asks for their responses.

Correct Answer

A. No, unless Judge informs the parties of Attorney's identity and the substance of Attorney's advice, and asks for their responses.

Explanation

"Under CJC 2.9(A)(2), a judge may obtain the written advice of a disinterested expert on the law applicable to a proceeding before the judge, if the judge gives advance notice to the parties of the person to be consulted and the subject matter of the advice to be solicited, and affords the parties a reasonable opportunity to object and respond to the notice and to the advice received. If Attorney has no interest in the case, Attorney is a disinterested expert. Judge may not consult Attorney unless Judge gives advance notice to the parties of Attorney and subject matter of the advice, and affords the parties reasonable opportunity to object and respond to the notice and the advice received.
"

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41.

After both parties had completed the presentation of evidence and arguments, Judge took under advisement a case tried in Judge's court without a jury in which Attorney had represented Plaintiff. The case involved a difficult fact issue of causation and a difficult issue of law. After the case was under advisement for several weeks, Attorney heard rumors that Judge was having difficulty determining the issue of factual causation and was uncertain about the applicable law. Immediately after hearing these rumors, Attorney telephoned Judge, told Judge of the rumors Attorney had heard, and asked if Judge would like to reopen the case for additional evidence and briefing from both parties. Thereafter Judge reopened the case for further testimony and requested supplementary briefs from both parties. Was it proper for Attorney to communicate with Judge?

Yes, because both parties were given full opportunity to present their views on the issues in the case.
Yes, because Attorney did not make any suggestion as to how Judge should decide the matter.
No, because Attorney communicated with Judge on a pending matter without advising opposing counsel.
No, because Attorney caused Judge to reopen a case that had been taken under advisement.

Correct Answer

A. No, because Attorney communicated with Judge on a pending matter without advising opposing counsel.

Explanation

"Ex parte communications with the judge are prohibited by MR 3.5. An ex parte communication is a communication that concerns the merits of a case, and occurs outside the presence and without the consent of the other parties to the litigation or their representatives. A lawyer must not communicate orally on the merits with the judicial officer before whom a matter is pending without giving adequate notice to the adversary. Generally, a written communication to a judicial officer is not ex parte if a copy of the communication is timely sent to opposing parties or their counsels [Restatement of the Law Governing Lawyers §113, cmt. [c]]. In this case, however, Attorney improperly communicated with Judge orally by telephone outside of the presence, and without the consent, of the adversary. Attorney should have approached the judge jointly with opposing counsel or through a formal submission of a written communication to the court with a copy sent to opposing counsel.
"

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42.

Trustco, a trust company, entered into the following arrangement with Attorney, a lawyer newly admitted to the bar. Trustco would provide Attorney with free office space in the building in which Trustco had its offices. If a customer of Trustco contacted Trustco about a will, an officer of Trustco, who is not a lawyer, would advise the customer and help the customer work out the details of the will. The customer would be informed that the necessary documents would be prepared by Trustco's staff. The completed documents would be submitted by an officer of Trustco to the customer for execution. Attorney, in accordance with a memorandum from Trustco's trust officer detailing the plan, would prepare the necessary documents. Attorney would never meet with the customer and would not charge the customer for these services. Attorney would be free to engage in private practice, subject only to the limitation that Attorney could not accept employment adverse to Trustco. Is Attorney subject to discipline for entering into the arrangement with Trustco?

Yes, because Attorney is restricting his right to practice.
Yes, because Attorney is aiding Trustco in the practice of law.
No, because Attorney is not charging the customer for his services.
No, because Attorney is not giving advice to Trustco's customers.

Correct Answer

A. Yes, because Attorney is aiding Trustco in the practice of law.

Explanation

"Law–related services are services that might reasonably be performed in conjunction with and, in substance, are related to the provision of legal services and not prohibited as the unauthorized practice of law when provided by a non–lawyer [MR 5.7(b)]. Law–related services include providing title insurance, financial planning, accounting, trust services, real estate counseling, legislative lobbying, economic analysis, social work, psychological counseling, tax preparation, and patent, medical, or environmental consulting [MR 5.7, cmt. [9]]. A lawyer may not assist another person in the unauthorized practice of law [MR 5.5, cmt. [1]]. Trustco may not provide legal services to its customers through a trust officer. Trustco is not authorized to practice law. The trust officer, a non–lawyer, may provide trust services, a law–related service, without Attorney being subject to discipline, but the services here relate to wills. Answering questions on wills is not a law–related service. By preparing the necessary documents for Trustco, Attorney facilitates Trustco in the unauthorized practice of law, though Attorney has no direct contact with customers.
"

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43.

Attorney represented Husband and Wife in the purchase of a business financed by contributions from their respective separate funds. The business was jointly operated by Husband and Wife after acquisition. After several years, a dispute arose over the management of the business. Husband and Wife sought Attorney's advice, and the matter was settled on the basis of an agreement drawn by Attorney and signed by Husband and Wife. Later, Wife asked Attorney to represent her in litigation against Husband based on the claim that Husband was guilty of fraud and misrepresentation in the negotiations for the prior settlement agreement. Is it proper for Attorney to represent Wife in this matter?

Yes, if all information relevant to the litigation was received by Attorney in the presence of both Husband and Wife.
Yes, if there is reason to believe Husband misled both Wife and Attorney at the time of the prior agreement.
No, because Attorney had previously acted for both parties in reaching the agreement now in dispute.
No, unless Husband is now represented by independent counsel.

Correct Answer

A. No, because Attorney had previously acted for both parties in reaching the agreement now in dispute.

Explanation

"A lawyer who has formerly represented a client in a matter may not thereafter represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client unless the former client consents in writing after consultation [MR 1.9(a)]. Husband and Wife are former clients of Attorney. Wife?s litigation relates to the same agreement Attorney drafted for Husband and Wife. Wife's interests are adverse to the interests of Husband. As such, Attorney may not represent Wife, unless Husband consents in writing after consultation.
"

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44.

Alpha and Beta are members of the bar in the same community but have never practiced together. Beta is a candidate in a contested election for judicial office. Beta is opposed by Delta, another lawyer in the community. Alpha believes Beta is better qualified than Delta for the judiciary and is supporting Beta's candidacy. Which of the following would be proper for Alpha? I. Solicit public endorsements for Beta's candidacy by other attorneys in the community who know Beta, including those who are likely to appear before Beta if Beta becomes a judge. II. Solicit contributions to Beta's campaign committee from other attorneys in the community, including those who are likely to appear before Beta if Beta becomes a judge. III. Publicly oppose the candidacy of Delta.

I only
I and II, but not III
I and III, but not II
I, II, and III

Correct Answer

A. I, II, and III

Explanation

To protect the integrity of the judiciary, a lawyer is specifically prohibited from making a statement s/he knows to be false, or with reckless disregard as to its truth or falsity, concerning the qualifications or integrity of a judge, adjudicative officer, public legal officer, or candidate for appointment to judicial or legal office [MR 8.2(a)]. A lawyer may not make a statement the lawyer knows to be false or with reckless disregard as to its truth or falsity concerning the qualifications or integrity of a judge, adjudicatory officer or public legal officer, or of a candidate for election or appointment to judicial office [MR 8.2]. A lawyer's assessment of judges and judicial candidates is relied on in evaluating such persons' professional or personal fitness for judicial or legal office. A false statement or opinion that is not candid can unfairly undermine public confidence in the administration of justice [MR 8.2, cmt. [1]]. Under MR 8.4, it is professional misconduct for a lawyer to engage in conduct prejudicial to the administration of justice. A judge or judicial candidate may not personally solicit or accept campaign contributions other than through a campaign committee as authorized under CJC 4.4. I is proper because the activities are not prejudicial to the administration of justice. II is proper because soliciting funds for Beta?s campaign is not prejudicial to the administration of justice. Beta may accept contributions through a campaign committee. III is proper because Alpha may publicly oppose Delta's candidacy as long as Alpha does not make any statement Alpha knows to be false or with reckless disregard as to its truth or falsity concerning the qualifications or integrity of Delta.

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45.

Attorney advertises on the local television station. In the advertisements, a professional actor says: "Do you need a lawyer? Call Attorney—her telephone number is area code 555–555–5555. Her fees might be lower than you think." Attorney approved the prerecorded advertisement and is keeping in her office files a copy of the recording of the actual transmission and a record of when each transmission was made. Is the advertisement proper?

Yes.
No, unless Attorney's fees are lower than those generally charged in the area where she practices.
No, because she used a professional actor for the television advertisement.
No, if she makes a charge for the initial consultation.

Correct Answer

A. Yes.

Explanation

"Advertising is permitted as long as the communication is not misleading and in accordance with MR 7.1 [MR 7.2]. MR 7.1 permits a lawyer to use any form of public communication about the lawyer's services that is not false or misleading. A statement is misleading if it contains a material misrepresentation of fact or law [MR 7.1]. A lawyer may advertise through written, recorded, or electronic communication, including public media [MR 7.2(a)]. All ads must include the name and office address of at least one attorney or law firm [MR 7.2(c)]. An unsubstantiated comparison of a lawyer's services or fees with the services or fees of other lawyers may be misleading if presented with specificity to lead a reasonable person to conclude the comparison can be substantiated [MR 7.1, cmt. [3]]. Here, the ad contained Attorney?s name in compliance with MR 7.2(c). Attorney could properly advertise on television according to MR 7.2(a). The statement by the actor on fees did not compare Attorney's fees with those of other lawyers. It was also not a statement of fact, but rather opinion.
"

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46.

Deft, who has been indicted for auto theft, is represented by Attorney. Prosecutor reasonably believes that Deft committed the offense, but, because of Deft's youth, it is in the interest of justice to permit Deft to plead guilty to the lesser offense of "joy-riding" in return for an agreement by Prosecutor to recommend probation. Prosecutor has so advised Attorney, but Attorney told Prosecutor she would not plea bargain and would insist on a jury trial. Attorney informed Deft of Prosecutor's offer and advised Deft not to accept it. Deft followed Attorney's advice. Attorney is a candidate for public office, and Prosecutor suspects that Attorney is insisting on a trial of the case to secure publicity for herself. I. Send a member of his staff who is not a lawyer to consult with Deft. II. Move the trial court to dismiss the indictment and accept a new complaint charging the offense of "joy-riding." III. Proceed to trial on the indictment and prosecute the case vigorously.

II only
III only
I and II, but not III
II and III, but not I

Correct Answer

A. II and III, but not I

Explanation

"Under MR 3,8, prosecutors must refrain from prosecuting a charge the prosecutor knows is not supported by probable cause. In the course of a representation, a lawyer must not communicate about the subject of the representation with a person (whether or not a party to the proceeding) that the lawyer knows is represented by another lawyer in the matter, unless the lawyer (1) has the consent of the other lawyer, or (2) is authorized to do so by law [MR 4.2]. A lawyer may not make a communication prohibited by MR 4.2 through the acts of another [MR 4.2, cmt. [4]]. I is not proper because Prosecutor knows Deft is represented by an attorney so Prosecutor is not able to directly, or have someone on his staff, consult with Deft.II is proper because it is supported by probable cause that Deft engaged in auto theft. In the interest of justice, Prosecutor can move the trial court to dismiss the indictment, and file a new complaint for the lesser offense of "joy riding" since the lesser offense is included in the greater offense. III is proper because Prosecutor reasonably believes Deft committed the offense; the charge is supported by probable cause.
"

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47.

Deft, who has been indicted for auto theft, is represented by Attorney. Prosecutor reasonably believes that Deft committed the offense, but, because of Deft's youth, it is in the interest of justice to permit Deft to plead guilty to the lesser offense of "joy-riding" in return for an agreement by Prosecutor to recommend probation. Prosecutor has so advised Attorney, but Attorney told Prosecutor she would not plea bargain and would insist on a jury trial. Attorney informed Deft of Prosecutor's offer and advised Deft not to accept it. Deft followed Attorney's advice. Attorney is a candidate for public office, and Prosecutor suspects that Attorney is insisting on a trial of the case to secure publicity for herself. Assume for the purposes of this question ONLY that Deft was tried, convicted, and sentenced to prison for two years. Must Prosecutor report to the disciplinary authority his suspicions about Attorney's conduct of the case?

Yes, because Deft suffered a detriment from Attorney's refusal to plea bargain.
Yes, if Attorney in fact received widespread publicity as a result of the trial.
No, unless Prosecutor has knowledge that Attorney's refusal to plea bargain was due to personal motives.
No, if Attorney zealously and competently represented Deft at the trial.

Correct Answer

A. No, unless Prosecutor has knowledge that Attorney's refusal to plea bargain was due to personal motives.

Explanation

"The client has the ultimate authority to determine the purposes or objectives to be served by the representation. The objectives may include whether to enter a plea in a criminal case, after consulting with the lawyer [MR 1.2(a)]. The lawyer ordinarily has the right to determine the technical and legal tactical means by which the client?s objectives will be pursued, but has the obligation to consult with the client concerning those means [MR 1.2, cmt. [2]]. A lawyer who has knowledge of a violation of the Rules that raises a question as to any lawyer's honesty, trustworthiness, or fitness as a lawyer must inform the appropriate professional authority [MR 8.3(a)]. Here, if Attorney refused to plea bargain because of personal motives, it would raise a question as to Attorney's honesty, trustworthiness or fitness as a lawyer. As such, if Prosecutor has knowledge that Attorney's refusal to plea bargain was due to personal motives, Prosecutor must report it to the disciplinary authority under MR 8.3(a).
"

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48.

Driver consulted Attorney and asked Attorney to represent Driver, who was being prosecuted for driving while intoxicated in a jurisdiction in which there is an increased penalty for a second offense. Driver told Attorney that his driver's license had been obtained under an assumed name because his prior license had been suspended for driving while under the influence of alcohol. Driver asked Attorney not to disclose Driver's true name during the course of the representation and told Attorney that, if called as a witness, he would give his assumed name. Attorney informed Driver that, in order properly to defend the case, Attorney must call Driver as a witness. Attorney called Driver as a witness and, in response to Attorney's question "what is your name?," Driver gave his assumed name and not his true name. Is Attorney subject to discipline?

Yes, because Attorney knowingly used false testimony.
Yes, if Driver committed a felony when he obtained the driver's license under an assumed name.
No, because Attorney's knowledge of Driver's true name was obtained during the course of representation.
No, unless Driver's true name is an issue in the proceeding.

Correct Answer

A. Yes, because Attorney knowingly used false testimony.

Explanation

"If a lawyer knows a client intends to testify falsely or wants the lawyer to introduce false evidence, the lawyer should seek to persuade the client that the evidence should not be offered [MR 3.3, cmt. [6]]. If the lawyer's statements are ineffective, and the lawyer continues to represent the client, the lawyer must refuse to offer the false evidence. If only a portion of the a client's testimony will be false, the lawyer may call the client to testify but may not elicit or otherwise permit the client to present the testimony the lawyer knows is false [MR 3.3, cmt. [6]]. A lawyer's knowledge that evidence is false can be inferred from the circumstances [MR 3.3, cmt. [8]]. Although a lawyer should resolve doubts about the veracity of testimony or other evidence in favor of a client, the lawyer cannot ignore an obvious falsehood [MR 3.3, cmt. [8]]. A lawyer may not knowingly offer evidence the lawyer knows to be false [MR 3.3(a)]. Here, Attorney knowingly used false testimony because Attorney knew Driver, if called as a witness, would give his assumed name and when Attorney called Driver as a witness, Driver gave his assumed name, not his true name.
"

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49.

Attorney represents Client, a plaintiff in a personal injury action. Wit was an eyewitness to the accident. Wit lives about 500 miles distant from the city where the case will be tried. Attorney interviewed Wit and determined that Wit's testimony would be favorable for Client. Wit asked Attorney to pay Wit, in addition to the statutory witness fees while attending the trial, the following: I. Reimbursement for actual travel expenses while attending the trial. II. Reimbursement for lost wages while present at the trial. III. An amount equal to 5% of any recovery in the matter. If Attorney agrees to pay Wit the above, for which, if any, is Attorney subject to discipline?

III only
II and III, but not I
I, II, and III
Neither I, II, nor III

Correct Answer

A. III only

Explanation

"A lawyer may pay a witness? reasonably incurred expenses, reasonable compensation to a witness for loss of time attending or testifying in a case, or a reasonable fee for the professional services of an expert witness [MR 3.4, cmt. [3]].I is proper because it relates to reasonably incurred expenses.II is proper because it relates to Wit?s reasonable compensation for loss of time attending or testifying at the trial.III is not proper because Wit may not receive a fee contingent on the outcome of the litigation or testimony Wit will give.
"

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Ix. Safekeeping Funds & Other Property

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Alpha is a member of the bar in State First and is also licensed as a stockbroker in State Second. In his application for renewal of his stockbroker's license in State Second, Alpha knowingly filed a false financial statement. Is Alpha subject to discipline in State First for so doing?