MPRE Practice Questions With Correct
Answers
1. Conglomerate Corporation owns a little more than half the stock of Giant
| | | | | | | | | | | | |
Company. Conglomerate's stock, in turn, is public, available on the public stock
| | | | | | | | | | | |
exchange, as is the remainder of the stock in Giant Company. The president of
| | | | | | | | | | | | | |
Conglomerate Corporation has asked Attorney Stevenson to represent Giant
| | | | | | | | |
Company in a deal by which Giant would make a proposed transfer of certain real
| | | | | | | | | | | | | |
|property to Conglomerate Corporation. The property in question is unusual
| | | | | | | | | |
because it contains an underground particle collider used for scientific research,
| | | | | | | | | | |
but also valuable farmland on the surface, as well as some valuable mineral rights
| | | | | | | | | | | | |
|in another part of the parcel. These factors make the property value difficult to
| | | | | | | | | | | | | |
assess by reference to the general real-estate market, which means it is difficult
| | | | | | | | | | | | |
for anyone to determine the fairness of the transfer price in the proposed deal.
| | | | | | | | | | | | | |
Would it be proper for Attorney Stevenson to facilitate - CORRECT ANSWER✔✔-d)
| | | | | | | | | | |
|No, not unless the attorney first obtains effective informed consent of the
| | | | | | | | | | | |
management of Giant Company, as well as that of Conglomerate, because the
| | | | | | | | | | | |
ownership of Conglomerate and Giant is not identical, and their interests
| | | | | | | | | | |
materially differ in the proposed transaction.
| | | | |
RESTATEMENT § 131 | |
2. Mr. Burns, the chief executive officer of Conglomerate Corporation, now faces
| | | | | | | | | | | |
criminal charges of discussing prices with the president of a competing firm. If
| | | | | | | | | | | | |
found guilty, both Mr. Burns and Conglomerate Corporation will be subject to civil
| | | | | | | | | | | |
|and criminal penalties under state and federal antitrust laws. An attorney has
| | | | | | | | | | | |
been representing Conglomerate Corporation. She has conducted a thorough
| | | | | | | | |
investigation of the matter, and she has personally concluded that no such pricing
| | | | | | | | | | | |
,discussions occurred. Both Conglomerate Corporation and Mr. Burns plan to
| | | | | | | | | | |
defend on that ground. Mr. Burns has asked the attorney to represent him, as
| | | | | | | | | | | | | |
well as Conglomerate Corporation, in the proceedings. The legal and factual
| | | | | | | | | | |
defenses of Conglomerate Corporation and Mr. Burns seem completely consistent
| | | | | | | | |
at the outset of the matter. Would the attorney need to obtain informed consent
| | | | | | | | | | | | | | |
to a conflict of interest from both Mr. Burns and a separate corp - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-a) Yes, the likelihood of conflicting positions | | | | | |
in such matters as plea bargaining requires the attorney to obtain the informed
| | | | | | | | | | | | |
consent of both clients before proceeding with the representation.
| | | | | | | |
RESTATEMENT § 131 | |
3. An attorney decides to purchase "litigation cost protection" insurance for
| | | | | | | | | | |
matters she handles on a contingency fee basis. Plaintiffs' lawyers can buy this
| | | | | | | | | | | | |
type of insurance on a case-by-case basis, for a one-time premium payment. The
| | | | | | | | | | | | |
insurance is available for purchase up to three months after the filing of the initial
| | | | | | | | | | | | | |
|complaint. Note that this policy is separate and distinct from malpractice liability
| | | | | | | | | | | |
insurance. The purpose of this type of insurance is to reimburse the attorney for
| | | | | | | | | | | | | |
litigation costs advanced by the attorney - only in the event of a trial loss. Do the
| | | | | | | | | | | | | | | | |
Model Rules of Professional Conduct prohibit the attorney from purchasing
| | | | | | | | | |
litigation cost protection insurance for her contingency fee cases?
| | | | | | | |
a) Yes, because the client and the attorney may have different cost-benefit
| | | | | | | | | | | |
calculations.
b) Yes, for an attorney may prefer that his
| | | | | | | |
,client accept a low settlement offer to ensure that the attorney receives -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-d) No, the attorney may purchase litigation cost
| | | | | | | | |
protection insurance so long as she does not allow the terms of the coverage to
| | | | | | | | | | | | | | |
adversely affect her independent professional judgment, the client-lawyer
| | | | | | | |
relationship, or the client's continuing best interests. | | | | | |
N.C Formal Ethics Op. 2018-6
| | | |
4. An attorney purchased "litigation cost protection" insurance at the outset of
| | | | | | | | | | | |
representing a plaintiff in a personal injury case. When the attorney recovered
| | | | | | | | | | | |
funds for the client through a settlement or favorable trial verdict, the attorney
| | | | | | | | | | | | |
proposed to receive reimbursement for the insurance premium from the
| | | | | | | | | |
judgment or settlement funds. The attorney disclosed the cost of the insurance to
| | | | | | | | | | | |
|the client as part of the representation agreement. Was it proper for the attorney
| | | | | | | | | | | | |
|to include in a client's fee agreement a provision allowing the attorney's
| | | | | | | | | | | |
purchase of litigation cost protection insurance and requiring reimbursement of
| | | | | | | | | |
the insurance premium from the client's funds in the event of a settlement or
| | | | | | | | | | | | | |
favorable trial verdict? | |
a) Yes, because the Model Rules do not purport to regulate insurance for lawyers,
| | | | | | | | | | | | |
which is a matter of state statute.
| | | | | | |
b) Yes, if the amount charged to the client is fair and reasonable, and t - CORRECT
| | | | | | | | | | | | | | | |
|ANSWER✔✔-b) Yes, if the amount charged to the client is fair and reasonable, | | | | | | | | | | | | |
and the lawyer fully explains to the client what litigation cost protection
| | | | | | | | | | | |
insurance is, why the lawyer believes a litigation cost protection policy will serve
| | | | | | | | | | | | |
the client's best interests, that the client should get the advice of independent
| | | | | | | | | | | | |
legal counsel regarding the arrangement, that other lawyers may advance the
| | | | | | | | | | |
, client's costs without charging the client the cost of a litigation cost protection
| | | | | | | | | | | | |
policy; and the client gives informed consent in writing, while the lawyer
| | | | | | | | | | | |
maintains independent professional judgment. | | |
N.C Formal Ethics Op. 2018-6
| | | |
5. Mr. Burns, the chief executive officer of Conglomerate Corporation, now faces
| | | | | | | | | | | |
criminal charges of discussing prices with the president of a competing firm. If
| | | | | | | | | | | | |
found guilty, both Mr. Burns and Conglomerate Corporation will be subject to civil
| | | | | | | | | | | |
|and criminal penalties under state and federal antitrust laws. An attorney has
| | | | | | | | | | | |
been representing Conglomerate Corporation. She has conducted a thorough
| | | | | | | | |
investigation of the matter, and she has personally concluded that such pricing
| | | | | | | | | | | |
discussions did in fact occur. Both Mr. Burns and Conglomerate Corporation have
| | | | | | | | | | | |
stopped their denials, and they now concede that the pricing discussions took
| | | | | | | | | | | |
place. One of Mr. Burns' defenses will be that the former general counsel of
| | | | | | | | | | | | | |
Conglomerate Corporation had advised Mr. Burns that a discussion of general
| | | | | | | | | | |
pricing practices with a competitor would not be illegal. In contrast,
| | | | | | | | | | |
Conglomerate Corporation denies that this was the legal advice given, a -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-d) No, the conflicting positions between Conglomerate
| | | | | | | |
and Mr. Burns are so great that the same lawyer cannot provide adequate legal
| | | | | | | | | | | | | |
representation to both, so consent to the conflict is ineffective. | | | | | | | | |
N.C Formal Ethics Op. 2018-6
| | | |
6. Big Firm represents hundreds of corporate clients out of a dozen offices in
| | | | | | | | | | | | | |
different states. The firm has no formal procedures in place to check for conflicts
| | | | | | | | | | | | | |
at the outset of representation for new clients, but the managing partner of the
| | | | | | | | | | | | | |
firm has an incredible memory and has never failed to spot a potential conflict of
| | | | | | | | | | | | | | |
interest in the past. An attorney agrees to represent a new corporate client that
| | | | | | | | | | | | | |
Answers
1. Conglomerate Corporation owns a little more than half the stock of Giant
| | | | | | | | | | | | |
Company. Conglomerate's stock, in turn, is public, available on the public stock
| | | | | | | | | | | |
exchange, as is the remainder of the stock in Giant Company. The president of
| | | | | | | | | | | | | |
Conglomerate Corporation has asked Attorney Stevenson to represent Giant
| | | | | | | | |
Company in a deal by which Giant would make a proposed transfer of certain real
| | | | | | | | | | | | | |
|property to Conglomerate Corporation. The property in question is unusual
| | | | | | | | | |
because it contains an underground particle collider used for scientific research,
| | | | | | | | | | |
but also valuable farmland on the surface, as well as some valuable mineral rights
| | | | | | | | | | | | |
|in another part of the parcel. These factors make the property value difficult to
| | | | | | | | | | | | | |
assess by reference to the general real-estate market, which means it is difficult
| | | | | | | | | | | | |
for anyone to determine the fairness of the transfer price in the proposed deal.
| | | | | | | | | | | | | |
Would it be proper for Attorney Stevenson to facilitate - CORRECT ANSWER✔✔-d)
| | | | | | | | | | |
|No, not unless the attorney first obtains effective informed consent of the
| | | | | | | | | | | |
management of Giant Company, as well as that of Conglomerate, because the
| | | | | | | | | | | |
ownership of Conglomerate and Giant is not identical, and their interests
| | | | | | | | | | |
materially differ in the proposed transaction.
| | | | |
RESTATEMENT § 131 | |
2. Mr. Burns, the chief executive officer of Conglomerate Corporation, now faces
| | | | | | | | | | | |
criminal charges of discussing prices with the president of a competing firm. If
| | | | | | | | | | | | |
found guilty, both Mr. Burns and Conglomerate Corporation will be subject to civil
| | | | | | | | | | | |
|and criminal penalties under state and federal antitrust laws. An attorney has
| | | | | | | | | | | |
been representing Conglomerate Corporation. She has conducted a thorough
| | | | | | | | |
investigation of the matter, and she has personally concluded that no such pricing
| | | | | | | | | | | |
,discussions occurred. Both Conglomerate Corporation and Mr. Burns plan to
| | | | | | | | | | |
defend on that ground. Mr. Burns has asked the attorney to represent him, as
| | | | | | | | | | | | | |
well as Conglomerate Corporation, in the proceedings. The legal and factual
| | | | | | | | | | |
defenses of Conglomerate Corporation and Mr. Burns seem completely consistent
| | | | | | | | |
at the outset of the matter. Would the attorney need to obtain informed consent
| | | | | | | | | | | | | | |
to a conflict of interest from both Mr. Burns and a separate corp - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-a) Yes, the likelihood of conflicting positions | | | | | |
in such matters as plea bargaining requires the attorney to obtain the informed
| | | | | | | | | | | | |
consent of both clients before proceeding with the representation.
| | | | | | | |
RESTATEMENT § 131 | |
3. An attorney decides to purchase "litigation cost protection" insurance for
| | | | | | | | | | |
matters she handles on a contingency fee basis. Plaintiffs' lawyers can buy this
| | | | | | | | | | | | |
type of insurance on a case-by-case basis, for a one-time premium payment. The
| | | | | | | | | | | | |
insurance is available for purchase up to three months after the filing of the initial
| | | | | | | | | | | | | |
|complaint. Note that this policy is separate and distinct from malpractice liability
| | | | | | | | | | | |
insurance. The purpose of this type of insurance is to reimburse the attorney for
| | | | | | | | | | | | | |
litigation costs advanced by the attorney - only in the event of a trial loss. Do the
| | | | | | | | | | | | | | | | |
Model Rules of Professional Conduct prohibit the attorney from purchasing
| | | | | | | | | |
litigation cost protection insurance for her contingency fee cases?
| | | | | | | |
a) Yes, because the client and the attorney may have different cost-benefit
| | | | | | | | | | | |
calculations.
b) Yes, for an attorney may prefer that his
| | | | | | | |
,client accept a low settlement offer to ensure that the attorney receives -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-d) No, the attorney may purchase litigation cost
| | | | | | | | |
protection insurance so long as she does not allow the terms of the coverage to
| | | | | | | | | | | | | | |
adversely affect her independent professional judgment, the client-lawyer
| | | | | | | |
relationship, or the client's continuing best interests. | | | | | |
N.C Formal Ethics Op. 2018-6
| | | |
4. An attorney purchased "litigation cost protection" insurance at the outset of
| | | | | | | | | | | |
representing a plaintiff in a personal injury case. When the attorney recovered
| | | | | | | | | | | |
funds for the client through a settlement or favorable trial verdict, the attorney
| | | | | | | | | | | | |
proposed to receive reimbursement for the insurance premium from the
| | | | | | | | | |
judgment or settlement funds. The attorney disclosed the cost of the insurance to
| | | | | | | | | | | |
|the client as part of the representation agreement. Was it proper for the attorney
| | | | | | | | | | | | |
|to include in a client's fee agreement a provision allowing the attorney's
| | | | | | | | | | | |
purchase of litigation cost protection insurance and requiring reimbursement of
| | | | | | | | | |
the insurance premium from the client's funds in the event of a settlement or
| | | | | | | | | | | | | |
favorable trial verdict? | |
a) Yes, because the Model Rules do not purport to regulate insurance for lawyers,
| | | | | | | | | | | | |
which is a matter of state statute.
| | | | | | |
b) Yes, if the amount charged to the client is fair and reasonable, and t - CORRECT
| | | | | | | | | | | | | | | |
|ANSWER✔✔-b) Yes, if the amount charged to the client is fair and reasonable, | | | | | | | | | | | | |
and the lawyer fully explains to the client what litigation cost protection
| | | | | | | | | | | |
insurance is, why the lawyer believes a litigation cost protection policy will serve
| | | | | | | | | | | | |
the client's best interests, that the client should get the advice of independent
| | | | | | | | | | | | |
legal counsel regarding the arrangement, that other lawyers may advance the
| | | | | | | | | | |
, client's costs without charging the client the cost of a litigation cost protection
| | | | | | | | | | | | |
policy; and the client gives informed consent in writing, while the lawyer
| | | | | | | | | | | |
maintains independent professional judgment. | | |
N.C Formal Ethics Op. 2018-6
| | | |
5. Mr. Burns, the chief executive officer of Conglomerate Corporation, now faces
| | | | | | | | | | | |
criminal charges of discussing prices with the president of a competing firm. If
| | | | | | | | | | | | |
found guilty, both Mr. Burns and Conglomerate Corporation will be subject to civil
| | | | | | | | | | | |
|and criminal penalties under state and federal antitrust laws. An attorney has
| | | | | | | | | | | |
been representing Conglomerate Corporation. She has conducted a thorough
| | | | | | | | |
investigation of the matter, and she has personally concluded that such pricing
| | | | | | | | | | | |
discussions did in fact occur. Both Mr. Burns and Conglomerate Corporation have
| | | | | | | | | | | |
stopped their denials, and they now concede that the pricing discussions took
| | | | | | | | | | | |
place. One of Mr. Burns' defenses will be that the former general counsel of
| | | | | | | | | | | | | |
Conglomerate Corporation had advised Mr. Burns that a discussion of general
| | | | | | | | | | |
pricing practices with a competitor would not be illegal. In contrast,
| | | | | | | | | | |
Conglomerate Corporation denies that this was the legal advice given, a -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-d) No, the conflicting positions between Conglomerate
| | | | | | | |
and Mr. Burns are so great that the same lawyer cannot provide adequate legal
| | | | | | | | | | | | | |
representation to both, so consent to the conflict is ineffective. | | | | | | | | |
N.C Formal Ethics Op. 2018-6
| | | |
6. Big Firm represents hundreds of corporate clients out of a dozen offices in
| | | | | | | | | | | | | |
different states. The firm has no formal procedures in place to check for conflicts
| | | | | | | | | | | | | |
at the outset of representation for new clients, but the managing partner of the
| | | | | | | | | | | | | |
firm has an incredible memory and has never failed to spot a potential conflict of
| | | | | | | | | | | | | | |
interest in the past. An attorney agrees to represent a new corporate client that
| | | | | | | | | | | | | |
