PARALEGAL ADVANCED COMPETENCY EXAM (PACE) —
ULTIMATE PRACTICE EXAM
Instructions: Choose the best answer for each of the following questions. This
comprehensive practice exam is designed for experienced paralegals preparing for the
NFPA Paralegal Advanced Competency Exam (PACE®). The actual exam consists of
approximately 200 multiple-choice questions with a 4-hour time limit.
Examiner/Administrator: National Federation of Paralegal Associations (NFPA)
Passing Score: Determined by standard-setting methodology
Exam Format: Computer-based testing administered through Prometric test centers
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DOMAIN 1: ADMINISTRATION OF CLIENT LEGAL MATTERS (Questions 1-40)
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Question 1:
Which of the following is the FIRST step a paralegal should take when opening a new
client file?
A) Draft the initial pleadings
B) Conduct a conflicts check
C) Prepare the retainer agreement
D) Schedule the client's deposition
Answer: B)
Explanation: A conflicts check must be performed before any work begins to ensure the
firm does not have a conflict of interest that would prevent representation. Failure to
conduct a proper conflicts check can result in disqualification and ethical violations.
Question 2:
A paralegal discovers that a potential client's matter presents a conflict of interest with an
existing client. The appropriate action is to:
A) Proceed with the representation and maintain confidentiality
,B) Decline representation and refer the potential client to another firm
C) Inform both clients of the conflict and obtain written waivers
D) Assign the new matter to a different attorney in the firm
Answer: C)
Explanation: Under ABA Model Rule 1.7, a lawyer may represent a client despite a conflict
of interest only if the lawyer reasonably believes they can provide competent and diligent
representation and each affected client gives informed consent, confirmed in writing.
Question 3:
The attorney-client privilege protects communications between:
A) A paralegal and the client
B) An attorney and the client
C) A paralegal and a witness
D) Both A and B
Answer: D)
Explanation: The attorney-client privilege extends to communications between the client
and the attorney's agents, including paralegals, when the communication is made for the
purpose of obtaining legal advice. However, the privilege belongs to the client and can
only be waived by the client.
Question 4:
Which of the following is NOT a proper method of handling client funds in a trust
account?
A) Depositing retainer fees into the trust account
B) Withdrawing earned fees from the trust account upon billing
C) Commingling trust funds with operating funds
D) Maintaining separate records for each client's trust account
,Answer: C)
Explanation: Commingling client trust funds with the firm's operating funds is a serious
ethical violation. Trust accounts must be maintained separately, and client funds must be
kept in trust until earned.
Question 5:
The statute of limitations for a breach of contract claim in most jurisdictions is typically:
A) 1 year
B) 2 years
C) 4 years
D) 6 years
Answer: C)
Explanation: The statute of limitations for breach of contract varies by jurisdiction, but the
UCC provides a 4-year statute for contracts for the sale of goods. Many states have similar
4-6 year statutes for written contracts.
Question 6:
A paralegal is responsible for calendaring deadlines in a litigation matter. Which of the
following deadlines would typically be set by court order or statute?
A) Discovery cut-off date
B) Date for serving initial disclosures
C) Trial date
D) All of the above
Answer: D)
Explanation: All of these deadlines are typically established by court order, local rules, or
statutes. Proper calendaring is essential to avoid sanctions and preserve the client's rights.
Question 7:
, When a client terminates the attorney-client relationship, the attorney must:
A) Immediately withdraw from all pending matters
B) Return all client property, including the file, upon request
C) Retain the file indefinitely
D) Only provide copies of the file if the client pays
Answer: B)
Explanation: Upon termination, the attorney must return all client property, including the
file, upon the client's request. The attorney may retain copies of the file but must not
condition the return on payment of fees.
Question 8:
Which of the following is an example of a "screening" mechanism to avoid imputed
disqualification?
A) A conflicts check at intake
B) An ethical wall or Chinese wall
C) A retainer agreement
D) A non-disclosure agreement
Answer: B)
Explanation: An ethical wall (or Chinese wall) is a screening mechanism used to prevent
the flow of confidential information from a disqualified attorney to other members of the
firm, thereby avoiding imputed disqualification.
Question 9:
The primary purpose of a retainer agreement is to:
A) Guarantee the outcome of the case
B) Define the scope of representation and fee arrangement
C) Waive the client's right to sue
D) Establish the attorney's authority
ULTIMATE PRACTICE EXAM
Instructions: Choose the best answer for each of the following questions. This
comprehensive practice exam is designed for experienced paralegals preparing for the
NFPA Paralegal Advanced Competency Exam (PACE®). The actual exam consists of
approximately 200 multiple-choice questions with a 4-hour time limit.
Examiner/Administrator: National Federation of Paralegal Associations (NFPA)
Passing Score: Determined by standard-setting methodology
Exam Format: Computer-based testing administered through Prometric test centers
---
DOMAIN 1: ADMINISTRATION OF CLIENT LEGAL MATTERS (Questions 1-40)
---
Question 1:
Which of the following is the FIRST step a paralegal should take when opening a new
client file?
A) Draft the initial pleadings
B) Conduct a conflicts check
C) Prepare the retainer agreement
D) Schedule the client's deposition
Answer: B)
Explanation: A conflicts check must be performed before any work begins to ensure the
firm does not have a conflict of interest that would prevent representation. Failure to
conduct a proper conflicts check can result in disqualification and ethical violations.
Question 2:
A paralegal discovers that a potential client's matter presents a conflict of interest with an
existing client. The appropriate action is to:
A) Proceed with the representation and maintain confidentiality
,B) Decline representation and refer the potential client to another firm
C) Inform both clients of the conflict and obtain written waivers
D) Assign the new matter to a different attorney in the firm
Answer: C)
Explanation: Under ABA Model Rule 1.7, a lawyer may represent a client despite a conflict
of interest only if the lawyer reasonably believes they can provide competent and diligent
representation and each affected client gives informed consent, confirmed in writing.
Question 3:
The attorney-client privilege protects communications between:
A) A paralegal and the client
B) An attorney and the client
C) A paralegal and a witness
D) Both A and B
Answer: D)
Explanation: The attorney-client privilege extends to communications between the client
and the attorney's agents, including paralegals, when the communication is made for the
purpose of obtaining legal advice. However, the privilege belongs to the client and can
only be waived by the client.
Question 4:
Which of the following is NOT a proper method of handling client funds in a trust
account?
A) Depositing retainer fees into the trust account
B) Withdrawing earned fees from the trust account upon billing
C) Commingling trust funds with operating funds
D) Maintaining separate records for each client's trust account
,Answer: C)
Explanation: Commingling client trust funds with the firm's operating funds is a serious
ethical violation. Trust accounts must be maintained separately, and client funds must be
kept in trust until earned.
Question 5:
The statute of limitations for a breach of contract claim in most jurisdictions is typically:
A) 1 year
B) 2 years
C) 4 years
D) 6 years
Answer: C)
Explanation: The statute of limitations for breach of contract varies by jurisdiction, but the
UCC provides a 4-year statute for contracts for the sale of goods. Many states have similar
4-6 year statutes for written contracts.
Question 6:
A paralegal is responsible for calendaring deadlines in a litigation matter. Which of the
following deadlines would typically be set by court order or statute?
A) Discovery cut-off date
B) Date for serving initial disclosures
C) Trial date
D) All of the above
Answer: D)
Explanation: All of these deadlines are typically established by court order, local rules, or
statutes. Proper calendaring is essential to avoid sanctions and preserve the client's rights.
Question 7:
, When a client terminates the attorney-client relationship, the attorney must:
A) Immediately withdraw from all pending matters
B) Return all client property, including the file, upon request
C) Retain the file indefinitely
D) Only provide copies of the file if the client pays
Answer: B)
Explanation: Upon termination, the attorney must return all client property, including the
file, upon the client's request. The attorney may retain copies of the file but must not
condition the return on payment of fees.
Question 8:
Which of the following is an example of a "screening" mechanism to avoid imputed
disqualification?
A) A conflicts check at intake
B) An ethical wall or Chinese wall
C) A retainer agreement
D) A non-disclosure agreement
Answer: B)
Explanation: An ethical wall (or Chinese wall) is a screening mechanism used to prevent
the flow of confidential information from a disqualified attorney to other members of the
firm, thereby avoiding imputed disqualification.
Question 9:
The primary purpose of a retainer agreement is to:
A) Guarantee the outcome of the case
B) Define the scope of representation and fee arrangement
C) Waive the client's right to sue
D) Establish the attorney's authority
