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Question 1
Yam Holiniski is an attorney in private practice, enjoying a pretty decent life in the bucolic suburbs, representing a host of clients in many different areas of the law. Yam's wife Jhan Holiniski is a real estate agent. Jhan handled the sale of a home, and is poised to earn a nice little fee for her labor. She referred the sellers to Yam for legal work associated with the sale. Yam is concerned that he might be conflicted out of the representation. Any problems with his taking on the sellers' case?
Correct Because of a conflict of interest where the attorney's duty to the client may conflict with the interest of his spouse in earning a commission or fee if the sale goes through, an attorney may not represent a client of a real estate agent spouse when the spouse is the listing or selling agent. As such, since Jhan participated in the sale of the house, Yam is disqualified from representing the sellers as their attorney. Jhan, and by association Yam, could end up in an adversarial position vis-section -vis the sellers. Therefore, choice (a) is the correct answer.
Incorrect! Because of a conflict of interest where the attorney's duty to the client may conflict with the interest of his spouse in earning a commission or fee if the sale goes through, an attorney may not represent a client of a real estate agent spouse when the spouse is the listing or selling agent. As such, since Jhan participated in the sale of the house, Yam is disqualified from representing the sellers as their attorney. Jhan, and by association Yam, could end up in an adversarial position vis-section -vis the sellers. Therefore, choice (a) is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Question 2
Yam Holiniski is an attorney in private practice, enjoying a pretty decent life in the bucolic suburbs, representing a host of clients in many different areas of the law. Yam's wife Jhan Holiniski is a real estate agent. Jhan's real estate firm handled the sale of a home. She told her colleague that the sellers would do well if they retained Yam Holinski to do the legal work associated with the sale. Yam is concerned that he might be conflicted out of the representation. Any problems with his taking on the sellers' case?
Correct
Incorrect!
Correct If the realtor-spouse did not obtain the real estate listing and did not make the sale, the attorney-spouse may represent either party to the sale. Here, Yam may represent the sellers because Yam does not stand in an adversarial position vis-section -vis sellers whom Jhan did not deal with personally. Therefore, choice (b) is the best answer
Incorrect! If the realtor-spouse did not obtain the real estate listing and did not make the sale, the attorney-spouse may represent either party to the sale. Here, Yam may represent the sellers because Yam does not stand in an adversarial position vis-section -vis sellers whom Jhan did not deal with personally. Therefore, choice (b) is the best answer
Correct
Incorrect!
Question 3
You are in-house counsel for Hear We Art, a hi-fi headphones seller. Most of your work deals with contractual relations. You help Hear We Art make deals with distributors from all over the world. Hear We Art has an outlet store upstate where people come to sample the company wares. Most of the firm's sales are made by catalog, and people usually buy based on the firm's reputation only, without getting a chance to try the products out. The outlet store is a great public service, even though it doesn't make many sales for the company. Anyway, on a rainy Thursday evening, a guy slips and falls inside the store. The guy, surprisingly enough, is a sometime-client of yours. In your spare time you occasionally represent private clients on various legal matters. You wonder if it would pose a conflict of interest to represent the guy in a suit against Hear We Art. It sounds somewhat ridiculous given your association with the firm, but you figure you might as well see if the ethical rules will allow for your taking on the guy's case after all, you could use a couple of extra bucks now that the holiday season is coming around. You consult the rules and find:
Correct
Incorrect!
Correct Of course, representing a client against a present client of yours poses questions as to your loyalty. From a public relations perspective, it might not be your best decision to take on a case against a present client. The ethical rules provide that you may not represent a client against a current client, even if the new case is completely unrelated, unless you obtain the fully informed consent of both clients. Here, since the new client's personal injury claim has no relation to the contract work you do for Hear We Art, you may represent the new client provided you obtain fully informed consent. Therefore, choice (b) is the best answer.
Incorrect! Of course, representing a client against a present client of yours poses questions as to your loyalty. From a public relations perspective, it might not be your best decision to take on a case against a present client. The ethical rules provide that you may not represent a client against a current client, even if the new case is completely unrelated, unless you obtain the fully informed consent of both clients. Here, since the new client's personal injury claim has no relation to the contract work you do for Hear We Art, you may represent the new client provided you obtain fully informed consent. Therefore, choice (b) is the best answer.