Conflicts of Interest in Legal Ethics: Master the Lawyer-Client Relationship

Question 1

Which of the following is NOT a common source of conflicts of interest for lawyers?

Accepted Answer

Being a witness in the client's case

Answer

Representing multiple clients with opposing interests

Answer

Having a prior romantic relationship with the client's spouse

Answer

Accepting a referral fee from a third party

Question 2

In which of the following situations is a lawyer most likely to have a conflict of interest?

Accepted Answer

Representing a client against a former client in an unrelated matter

Answer

Representing a client in a case involving a subject matter in which the lawyer has specialized expertise

Answer

Representing multiple clients with similar legal interests

Answer

Representing a client in a matter that is likely to generate significant fees for the lawyer

Question 3

Which of the following is a key factor in assessing the materiality of a conflict of interest?

Accepted Answer

The likelihood of the conflict affecting the lawyer's ability to represent the client zealously

Answer

The financial value of the matter to the lawyer

Answer

The wishes and instructions of the client

Answer

The potential impact on the lawyer's reputation

Question 4

Which of the following is a valid defense to a claim of breach of fiduciary duty based on a conflict of interest?

Accepted Answer

The client's informed consent to the conflict of interest

Answer

The lawyer's good faith belief that the conflict was immaterial

Answer

The fact that the lawyer acted in the client's best interests

Answer

The lawyer's lack of awareness of the conflict of interest

Question 5

What is a lawyer's ethical duty upon becoming aware of a potential conflict of interest during the course of representation?

Accepted Answer

To disclose the conflict of interest to the client and obtain their informed consent

Answer

To withdraw from the representation

Answer

To consult with a supervisor or senior lawyer

Answer

To seek guidance from the regulatory authority

Question 6

When can a lawyer ethically secure informed consent and a waiver to act in a conflict of interest situation?

Accepted Answer

After fully informing the client of the potential risks and benefits of their representation and obtaining their written consent.

Answer

When the lawyer believes the client's interests will ultimately benefit from their representation.

Answer

When the potential conflict is minor and unlikely to impact the lawyer's representation.

Question 7

Which of the following factors is NOT relevant when determining whether a conflict of interest exists?

Accepted Answer

The client's age

Answer

The nature of the legal matter

Answer

The likelihood of harm to the client

Answer

The lawyer's financial interest in the matter

Question 8

Under what circumstances may a lawyer act for multiple clients with potentially conflicting interests?

Accepted Answer

When the clients consent in writing after receiving full disclosure of the conflict and advice on the implications.

Answer

When the lawyer believes the conflict is minor and can be managed without prejudice to either client.

Answer

When the lawyer has a personal interest in the matter.

Answer

Under no circumstances.

Question 9

What is the primary obligation of a lawyer who discovers a conflict of interest?

Accepted Answer

To disclose the conflict to all clients in writing and seek their consent to continue acting.

Answer

To withdraw from representing all clients involved immediately.

Answer

To continue representing the clients, but take steps to avoid any actual conflict.

Answer

To report the conflict to the relevant regulatory authority.

Question 10

Which of the following factors is NOT relevant in determining whether a conflict of interest exists?

Accepted Answer

The reputation of the lawyer.

Answer

The nature of the legal services being provided.

Answer

The extent of the lawyer's financial interest in the matter.

Answer

The lawyer's personal relationship with the client.

Question 11

Which of the following situations most clearly presents a conflict of interest that would make it unethical for a lawyer to represent a client?

Accepted Answer

Representing opposing parties in a divorce proceeding

Answer

Negotiating a settlement agreement with opposing counsel

Answer

Accepting a new client with a similar case to an existing client

Answer

Referring a client to a third-party service provider

Question 12

In the event of a conflict of interest, which action should a lawyer prioritize to resolve the issue ethically and effectively?

Accepted Answer

Withdraw from representing at least one of the clients involved.

Answer

Continue representing both clients with their informed consent.

Answer

Refer the clients to an alternative lawyer.

Answer

Ignore the conflict of interest and continue representation.

Question 13

Which of the following is a key factor in determining whether a conflict of interest exists?

Accepted Answer

Whether the client's interests are materially adverse to each other

Answer

The lawyer's previous experience with similar matters

Answer

The lawyer's personal beliefs about the matter

Question 14

What is the lawyer's duty in the event of a potential conflict of interest?

Accepted Answer

To disclose the potential conflict to the client and obtain their informed consent

Answer

To seek advice from the SRA

Answer

To withdraw from representing the client

Question 15

Which of the following is NOT a potential negative consequence of a conflict of interest?

Accepted Answer

Enhanced reputation of the lawyer

Answer

Voiding of the retainer agreement

Answer

Disciplinary action against the lawyer

Answer

Loss of client confidence

Question 16

What is the role of the client in managing conflicts of interest?

Accepted Answer

To provide the lawyer with full and accurate information about their interests

Answer

To determine whether a conflict of interest exists

Answer

To consent to the lawyer acting despite a conflict of interest

Question 17

Which of the following is a type of conflict of interest that arises when the lawyer has a personal stake in the outcome of the representation?

Accepted Answer

Conflict of interest due to personal interest

Answer

Conflict of interest due to financial relationship

Answer

Conflict of interest due to multiple representation

Answer

Conflict of interest due to former representation

Question 18

What is the ethical principle that requires lawyers to act in the best interests of their clients and avoid conflicts of interest?

Accepted Answer

Duty of loyalty

Answer

Duty of confidentiality

Answer

Duty of competence

Answer

Duty of fairness

Question 19

Who is ultimately responsible for managing conflicts of interest?

Accepted Answer

The individual lawyer

Answer

The client

Answer

The professional indemnity insurer

Answer

The law firm

Question 20

A lawyer is approached by a potential new client whose interests conflict with those of a current client. The lawyer believes they can effectively represent both clients, and both clients consent. Which Solicitors Regulation Authority (SRA) principle is **most** directly engaged in this scenario?

Accepted Answer

Acting in the best interests of each client.

Answer

Maintaining your competence and behaving in a way that befits your role as a lawyer.

Answer

Behaving in a way that maintains the trust the public places in you and in the provision of legal services.

Answer

Upholding the rule of law and the proper administration of justice.

Question 21

Which of the following scenarios is **most likely** to be a breach of client confidentiality?

Accepted Answer

A lawyer discloses confidential client information to secure a personal loan.

Answer

A lawyer discloses confidential client information with the client's informed consent.

Answer

A lawyer discloses confidential client information to prevent a serious crime.

Question 22

A solicitor represents both the buyer and seller in a property transaction. Both parties are aware of the dual representation and consent to it. What is the **most significant** ethical concern in this situation?

Accepted Answer

The potential for a conflict of interest to arise during the transaction.

Answer

The solicitor's increased workload due to representing both parties.

Answer

The possibility of one party feeling pressured to agree to the solicitor's terms.

Question 23

A lawyer previously represented a company in a contract dispute. The lawyer is now approached by a new client who wishes to sue the same company in an unrelated matter. What is the **most important** factor for the lawyer to consider in determining whether to accept the new client?

Accepted Answer

Whether the lawyer can avoid using confidential information from the previous representation to the disadvantage of the former client.

Answer

Whether the lawyer's fees will be higher for representing the new client against the former client.

Question 24

A lawyer is acting for a client in a litigation matter. The client instructs the lawyer to make an application to the court which the lawyer believes is frivolous and without merit. What is the **most appropriate** course of action for the lawyer to take?

Accepted Answer

Advise the client against making the application and explain the potential consequences of doing so.

Answer

Withdraw from representing the client, citing a breakdown in the lawyer-client relationship.

Answer

Follow the client's instructions and make the application to the court without question.

Question 25

Which of the following is **NOT** a recognized exception to client confidentiality?

Accepted Answer

Disclosing information to protect the lawyer's own reputation.

Answer

Disclosing information to prevent a client from committing a crime.

Answer

Disclosing information when required by law or court order.

Question 26

A lawyer represents a company and its managing director in a legal matter. The managing director asks the lawyer to keep certain information confidential from the company's board of directors. What should the lawyer do **FIRST**?

Accepted Answer

Explain to the managing director that the duty of confidentiality is owed to the company as a whole, not just to the managing director.

Answer

Agree to keep the information confidential from the board of directors, as the managing director is the lawyer's primary client.

Question 27

Which of the following is a key principle outlined in the SRA Code of Conduct for Solicitors, **RELATING to conflicts of interest**?

Accepted Answer

You do not act if there is an own interest conflict or a significant risk of such a conflict.

Answer

You maintain proper accounting records and deal with client money appropriately.

Answer

You ensure that your client's confidentiality is protected at all times.

Question 28

A law firm is considering taking on a new client whose business interests directly compete with those of an existing client. What is the **most effective** way for the law firm to manage this potential conflict of interest?

Accepted Answer

Implementing an information barrier to prevent information sharing between the teams working for each client.

Answer

Assigning the same team of lawyers to work for both clients, as they will be familiar with the relevant legal issues.

Question 29

A lawyer is acting for a client in a personal injury claim. The lawyer receives a settlement offer from the defendant which the lawyer believes is in the client's best interests to accept. However, the client instructs the lawyer to reject the offer. What should the lawyer do?

Accepted Answer

Advise the client of the implications of rejecting the offer and confirm in writing that the lawyer's advice is to accept.

Answer

Accept the settlement offer on behalf of the client, as the lawyer believes it is in the client's best interests.