MPRE 500 PRACTICE QUESTIONS AND
ANSWER; LATEST UPDATED VERSION 2025;
ALREADY GRADED A+
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 - ANS-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 - ANS-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 - ANS-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 - ANS-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 - ANS-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 owns many
subsidiaries, and checks with the managing partner, who assured Attorney there are no potential
conflicts. After the new corporate client had disclosed a substantial amount of confidential information,
it emerged that some of its subsidiaries were directly adverse to other clients of Big Firm. The attorney
was completely unaware of the potential conflicts at the time he agreed to the representation, despite
asking the corporate client a few questions about the opposing parties in pending litigation it migh -
ANS-a) Yes, because ignorance caused by a failure to institute reasonable procedures, appropriate for
the size and type of firm and practice, will not excuse a lawyer's violation of the Rules regarding conflicts
of interest.
7. An attorney sued Giant Company on behalf of a client in a personal injury matter. During the
protracted litigation that ensued, Conglomerate bought Giant Company. The attorney was already
representing Conglomerate in a regulatory compliance matter before a federal administrative agency.
Assuming this development was unforeseeable at the outset of representing the client against Giant
Company, will the attorney have the option to withdraw from one of the representations to avoid the
conflict?
a) Yes, because one matter is in state court and the other matter is a completely unrelated federal
administrative proceeding.
b) Yes, but the attorney must seek court approval where necessary and take steps to minimize harm to
the clients, and he must continue to protect the confidences of the client from whose representation
the lawyer has withdrawn.
c) No, if a conflict arises after representation is underway, the lawye - ANS-b) Yes, but the attorney must
seek court approval where necessary and take steps to minimize harm to the clients, and he must
continue to protect the confidences of the client from whose representation the lawyer has withdrawn.
8. A husband and wife decide to divorce and reach an agreement to share the same lawyer in hopes of
saving money. They hire an attorney to represent each of them in Family Court for the dissolution of
marriage. The attorney explains that there is an obvious conflict of interest here, but the husband and
wife insist, and sign informed consent forms waiving the conflict and their rights to assert any future
claims related to the conflict. The husband and wife have no children, and they have always kept
separate bank accounts. Each purchased their own car from the money in their own bank account and
, each car's title is in only one name. They live in an apartment whose lease is expiring soon, so there is no
real property to divide. Would it be proper for the attorney to represent both in the divorce?
a) Yes, because it appears on these facts that
there will be no assets in dispute at all, so the theoretical conflict of - ANS-d) No, because the
representation involves the assertion of a claim by one client against another client represented by the
lawyer in the same litigation or other proceeding before a tribunal.
9. Three individuals plan to form a joint venture and ask an attorney to represent them in drafting the
necessary documents and making the necessary filings with government agencies. They have already
agreed that everyone will contribute exactly one-third of the startup funds for the venture, each will
own a one-third share, each will have equal control over the Board, and each agrees to indemnify the
others for a one- third share of any personal liability related to the joint venture. They have also agreed
that they will have no non-compete agreements. The joint venture will hire managers, marketers, and
other employees to operate the business. The three individuals are co-owners of a patent that could
potentially be very lucrative when they bring it to market, and they have known each other and worked
together for a long time. The attorney cannot find any current areas of conflict between them, though
he knows that - ANS-b) Yes, because the mere possibility of
subsequent harm does not itself require
disclosure and consent.
10. A client owns a partnership share of a closely-held business, and the other partners vote to impose
an involuntary buy-out of the client to remove him from the firm. The client is clearly upset about this,
but the partnership agreement clearly permits involuntary buyouts by a majority vote of the other
shareholders. Then the client hires an attorney to represent him in the buyout transaction, to review the
necessary documents and provide legal counsel about it. No litigation is under consideration yet. The
attorney's sister is also a lawyer in that city, at another firm, and the sister represents the other
shareholders in the partnership. Nevertheless, the attorney did not disclose that her sister represented
the other partners, as she and her sister are not close and rarely speak, and the matter is unlikely to turn
into litigation. Is the attorney, or the other lawyers in her firm, subject to disqualification in - ANS-d) The
attorney would be subject to disqualification, but ordinarily the other lawyers in her firm would not be
subject to disqualification.
11. An attorney has applied to make a lateral move from her firm to Big Firm, and she has already gone
through the first two of three rounds of interviews for the position. Then the attorney agrees to
represent a client in filing a breach of contract claim against Construction Company over a commercial
development project. Big Firm is representing Construction Company, and the firm's lawyers drafted the
contract that forms the basis of the client's complaint. The client claims that Construction Company
breached a certain provision of the contract that is ambiguous; Construction Company is confident that
its conduct falls within the contractual language in that provision. Is it proper for the attorney to
undertake representation of the client in this case?
a) Yes, assuming the client gives informed consent to the representation despite the conflict of interest
here.
ANSWER; LATEST UPDATED VERSION 2025;
ALREADY GRADED A+
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 - ANS-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 - ANS-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 - ANS-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 - ANS-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 - ANS-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 owns many
subsidiaries, and checks with the managing partner, who assured Attorney there are no potential
conflicts. After the new corporate client had disclosed a substantial amount of confidential information,
it emerged that some of its subsidiaries were directly adverse to other clients of Big Firm. The attorney
was completely unaware of the potential conflicts at the time he agreed to the representation, despite
asking the corporate client a few questions about the opposing parties in pending litigation it migh -
ANS-a) Yes, because ignorance caused by a failure to institute reasonable procedures, appropriate for
the size and type of firm and practice, will not excuse a lawyer's violation of the Rules regarding conflicts
of interest.
7. An attorney sued Giant Company on behalf of a client in a personal injury matter. During the
protracted litigation that ensued, Conglomerate bought Giant Company. The attorney was already
representing Conglomerate in a regulatory compliance matter before a federal administrative agency.
Assuming this development was unforeseeable at the outset of representing the client against Giant
Company, will the attorney have the option to withdraw from one of the representations to avoid the
conflict?
a) Yes, because one matter is in state court and the other matter is a completely unrelated federal
administrative proceeding.
b) Yes, but the attorney must seek court approval where necessary and take steps to minimize harm to
the clients, and he must continue to protect the confidences of the client from whose representation
the lawyer has withdrawn.
c) No, if a conflict arises after representation is underway, the lawye - ANS-b) Yes, but the attorney must
seek court approval where necessary and take steps to minimize harm to the clients, and he must
continue to protect the confidences of the client from whose representation the lawyer has withdrawn.
8. A husband and wife decide to divorce and reach an agreement to share the same lawyer in hopes of
saving money. They hire an attorney to represent each of them in Family Court for the dissolution of
marriage. The attorney explains that there is an obvious conflict of interest here, but the husband and
wife insist, and sign informed consent forms waiving the conflict and their rights to assert any future
claims related to the conflict. The husband and wife have no children, and they have always kept
separate bank accounts. Each purchased their own car from the money in their own bank account and
, each car's title is in only one name. They live in an apartment whose lease is expiring soon, so there is no
real property to divide. Would it be proper for the attorney to represent both in the divorce?
a) Yes, because it appears on these facts that
there will be no assets in dispute at all, so the theoretical conflict of - ANS-d) No, because the
representation involves the assertion of a claim by one client against another client represented by the
lawyer in the same litigation or other proceeding before a tribunal.
9. Three individuals plan to form a joint venture and ask an attorney to represent them in drafting the
necessary documents and making the necessary filings with government agencies. They have already
agreed that everyone will contribute exactly one-third of the startup funds for the venture, each will
own a one-third share, each will have equal control over the Board, and each agrees to indemnify the
others for a one- third share of any personal liability related to the joint venture. They have also agreed
that they will have no non-compete agreements. The joint venture will hire managers, marketers, and
other employees to operate the business. The three individuals are co-owners of a patent that could
potentially be very lucrative when they bring it to market, and they have known each other and worked
together for a long time. The attorney cannot find any current areas of conflict between them, though
he knows that - ANS-b) Yes, because the mere possibility of
subsequent harm does not itself require
disclosure and consent.
10. A client owns a partnership share of a closely-held business, and the other partners vote to impose
an involuntary buy-out of the client to remove him from the firm. The client is clearly upset about this,
but the partnership agreement clearly permits involuntary buyouts by a majority vote of the other
shareholders. Then the client hires an attorney to represent him in the buyout transaction, to review the
necessary documents and provide legal counsel about it. No litigation is under consideration yet. The
attorney's sister is also a lawyer in that city, at another firm, and the sister represents the other
shareholders in the partnership. Nevertheless, the attorney did not disclose that her sister represented
the other partners, as she and her sister are not close and rarely speak, and the matter is unlikely to turn
into litigation. Is the attorney, or the other lawyers in her firm, subject to disqualification in - ANS-d) The
attorney would be subject to disqualification, but ordinarily the other lawyers in her firm would not be
subject to disqualification.
11. An attorney has applied to make a lateral move from her firm to Big Firm, and she has already gone
through the first two of three rounds of interviews for the position. Then the attorney agrees to
represent a client in filing a breach of contract claim against Construction Company over a commercial
development project. Big Firm is representing Construction Company, and the firm's lawyers drafted the
contract that forms the basis of the client's complaint. The client claims that Construction Company
breached a certain provision of the contract that is ambiguous; Construction Company is confident that
its conduct falls within the contractual language in that provision. Is it proper for the attorney to
undertake representation of the client in this case?
a) Yes, assuming the client gives informed consent to the representation despite the conflict of interest
here.
