500 MPRE Refined Exam
With Exact Solutions
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 - Correct Answers-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 Answers-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 Answers-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 Answers-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 - Correct Answers-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 - Correct Answers-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 -
Correct Answers-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 - Correct
Answers-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
With Exact Solutions
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 - Correct Answers-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 Answers-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 Answers-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 Answers-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 - Correct Answers-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 - Correct Answers-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 -
Correct Answers-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 - Correct
Answers-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
