Rules Review
Comprehensive set of 500 MPRE practice questions
covering key topics in professional responsibility,
including answers and rule explanations based on ABA
Model Rules of Professional Conduct
Latest Updated Exam Study Guide 2025/2026
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 - ANSd) 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 - ANSa) 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?
,500 MPRE Practice Questions with Answers – Ethical
Rules Review
Comprehensive set of 500 MPRE practice questions
covering key topics in professional responsibility,
including answers and rule explanations based on ABA
Model Rules of Professional Conduct
Latest Updated Exam Study Guide 2025/2026
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 - ANSd) 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 - ANSb) 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
,500 MPRE Practice Questions with Answers – Ethical
Rules Review
Comprehensive set of 500 MPRE practice questions
covering key topics in professional responsibility,
including answers and rule explanations based on ABA
Model Rules of Professional Conduct
Latest Updated Exam Study Guide 2025/2026
practices with a competitor would not be illegal. In contrast, Conglomerate Corporation
denies that this was the legal advice given, a - ANSd) 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 -
ANSa) 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 - ANSb) 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
, 500 MPRE Practice Questions with Answers – Ethical
Rules Review
Comprehensive set of 500 MPRE practice questions
covering key topics in professional responsibility,
including answers and rule explanations based on ABA
Model Rules of Professional Conduct
Latest Updated Exam Study Guide 2025/2026
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 - ANSd) 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 - ANSb) 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 - ANSd) 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