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
| | | | | | | | | |
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
| | | | | | | | | |
