You represent a musicians' union fighting for its rights against the big record companies who employ them. Most of the time your work involves employment contracts you try to get the most for union members, and have been especially successful when it comes to helping those who have a few hit songs under their belts. One of the union members, DJ Buttmaxxx, is especially popular but also especially crooked. A year earlier, he was elected as treasurer of the union. Now the union members are alleging Buttmaxxx misappropriated union funds, using them to buy a set of platinum teeth. Buttmaxx wants you to represent him personally in a suit brought against him and the union by certain union members. May you simultaneously represent the union and DJ Buttmaxxx, the treasurer?
Correct
Incorrect!
Correct
Incorrect!
Correct Under certain circumstances, a lawyer will be entitled to represent an employee and the employer ' but dual representation is not allowable if, as in this case, the employee's and the employer's interests seriously conflict. Here, Buttmaxxx's wrongdoing places him in a position to not only be sued by union members, but eventually, the union itself. The union will probably seek indemnity from Buttmaxxx if he in fact was the cause of the misappropriation. Therefore, choice (c) is the best answer. Choice (a) is correct in stating that the parties are on the 'same side'; however, this relationship is only nominal, and may only last as long as it takes for a judgment to be entered. The potential for conflict is too serious for representation to continue, and therefore (a) as well as choice (b) are incorrect. See Model Rule 1.13.
Incorrect! Under certain circumstances, a lawyer will be entitled to represent an employee and the employer ' but dual representation is not allowable if, as in this case, the employee's and the employer's interests seriously conflict. Here, Buttmaxxx's wrongdoing places him in a position to not only be sued by union members, but eventually, the union itself. The union will probably seek indemnity from Buttmaxxx if he in fact was the cause of the misappropriation. Therefore, choice (c) is the best answer. Choice (a) is correct in stating that the parties are on the 'same side'; however, this relationship is only nominal, and may only last as long as it takes for a judgment to be entered. The potential for conflict is too serious for representation to continue, and therefore (a) as well as choice (b) are incorrect. See Model Rule 1.13.
Question 2
Candy Pewter is a lawyer representing a major pharmaceutical manufacturer. In a discussion with the manager of one of the pharmaceutical's factories, the manager tells Candy that a small percent of ash is included in the pill for hypertension. This percentage is beyond that which the federal government allows. Candy is concerned, because she knows the manager is substituting cheap junk for a more expensive ingredient in order to increase the pill's profitability. What must Candy do?
Correct
Incorrect!
Correct Candy has two duties, both to the manager and, importantly, to the corporation which employs her. First, Candy must tell the manager that she represents the company and not the manager individually. Candy must also report the information to a company official. She should, as well, tell the manager to seek independent counsel. See Model Rule 1.13. Therefore, choice (b) is the best answer. Choices (a) and (c) are incorrect because Candy would be violating the manager's and the firm's confidences by divulging the information to the government agency or to the media.
Incorrect! Candy has two duties, both to the manager and, importantly, to the corporation which employs her. First, Candy must tell the manager that she represents the company and not the manager individually. Candy must also report the information to a company official. She should, as well, tell the manager to seek independent counsel. See Model Rule 1.13. Therefore, choice (b) is the best answer. Choices (a) and (c) are incorrect because Candy would be violating the manager's and the firm's confidences by divulging the information to the government agency or to the media.
Correct
Incorrect!
Question 3
You represent Horrible, Nasty, Brutish, and Short L.P., a high-fallutin' investment bank enjoying wonderful business these days, underwriting a large number of initial public offerings for small tech companies. One of the bank's superstar fixed-income traders, Sam Snee, has an unfortunate insider trading compulsion. He could be prosecuted criminally for his acts, and the partnership is exposed to serious liability. As a seasoned Wall Street professional, you know how serious the issue is. You dash into the office of Harry Horrible while he's hard at work eating a tunafish on rye and talking full-steam into his speakerphone about his golf handicap. You interrupt Mr. Horrible and explain what Sam Snee's been up to. Horrible already knows about Snee, and says, "Tell me something new, lawyer!! He's making me big money why stop when the going's good?" So Horrible approves of Snee's insider trading. There is no one higher in the firm to report the illegal activity to. Must you resign?
Correct
Incorrect!
Correct
Incorrect!
Correct The Model Rules hold that a lawyer in such a position may resign, but he is not required to do so. Therefore choice (c) is the best answer. A lawyer representing a business entity owes a duty of loyalty to the entity and not any one particular employee. If the lawyer knows an employee is misbehaving by violating firm obligations, the lawyer must do whatever is reasonable to serve the entity's best interests. If the highest authority in the firm refuses to comply with his obligations, the lawyer may resign his post so as to protect his own professional interests. See Model Rule 1.13(c).
Incorrect! The Model Rules hold that a lawyer in such a position may resign, but he is not required to do so. Therefore choice (c) is the best answer. A lawyer representing a business entity owes a duty of loyalty to the entity and not any one particular employee. If the lawyer knows an employee is misbehaving by violating firm obligations, the lawyer must do whatever is reasonable to serve the entity's best interests. If the highest authority in the firm refuses to comply with his obligations, the lawyer may resign his post so as to protect his own professional interests. See Model Rule 1.13(c).