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14 Questions

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1.8: Current Clients

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Questions and Answers

What must a lawyer do before entering into a business transaction with a client?

Disclose the transaction and terms in a manner that can be reasonably understood by the client. (correct)

Advise the client to not seek independent legal counsel.

Inform other clients about the transaction to ensure transparency.

Keep the transaction terms confidential to avoid conflicts.

Under what condition can a lawyer use information related to a client to their disadvantage?

Only with the informed consent of the client. (correct)

If it benefits the lawyer personally.

If the client is unaware of the use of the information.

If the lawyer feels it is necessary for their own protection.

What should a lawyer do before soliciting a substantial gift from a client?

Ensure that there is informed consent from the client and avoid preparing any legal instruments for such gifts. (correct)

Discourage clients from providing any gifts.

Encourage the client to give the gift discreetly.

Seek permission from the client's family before accepting any gifts.

When is a lawyer allowed to prepare a testamentary gift on behalf of a client?

Only if they are related to the client. Signup and view all the answers

What is one requirement for a lawyer before acquiring an ownership adverse to a client?

Fully disclose the transaction and terms to the client in writing. Signup and view all the answers

In what form should a client's informed consent be obtained for a business transaction with a lawyer?

In writing, signed by the client, detailing essential terms of the transaction. Signup and view all the answers

What type of individuals are considered related persons according to the paragraph?

Relatives or individuals with close familial relationships with the lawyer or client Signup and view all the answers

What is prohibited for a lawyer to promise, assure, or imply to a client?

Gifts prior to retention Signup and view all the answers

Under what circumstances can a lawyer provide financial assistance to a client in connection with pending or contemplated litigation?

In specific situations like advancing court costs and expenses of litigation Signup and view all the answers

When can a lawyer accept compensation for representing a client from someone other than the client?

If the client gives informed consent and there is no interference with the lawyer's independence of professional judgment Signup and view all the answers

What is required for a lawyer who represents two or more clients to make an aggregate settlement of their claims?

Informed consent from each client Signup and view all the answers

Under what condition can a lawyer settle a claim for malpractice liability with an unrepresented client?

Only with informed consent and advice from independent legal counsel for the client Signup and view all the answers

What is one exception where a lawyer can acquire a proprietary interest in a cause of action?

$500 lien authorized by law to secure the lawyer's fee Signup and view all the answers

When is a lawyer permitted to publicize or advertise willingness to provide gifts to prospective clients?

A lawyer shall not publicize or advertise such willingness Signup and view all the answers