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500 MPRE Practice Questions Questions and
Correct Answers/ Latest Update / Already Graded
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
© 2025/ 2026 | ® All rights reserved
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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
© 2025/ 2026 | ® All rights reserved
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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
© 2025/ 2026 | ® All rights reserved
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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
© 2025/ 2026 | ® All rights reserved
500 MPRE Practice Questions Questions and
Correct Answers/ Latest Update / Already Graded
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
© 2025/ 2026 | ® All rights reserved
, 2 | Page
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
© 2025/ 2026 | ® All rights reserved
, 3 | Page
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
© 2025/ 2026 | ® All rights reserved
, 4 | Page
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
© 2025/ 2026 | ® All rights reserved
