ALA Professional Ethics and Conduct 3

Question 1

In the context of legal management, 'professional competence' requires a CLM to:

Accepted Answer

Continuously develop knowledge across all relevant management disciplines

Answer

Competence for a CLM involves continuous development across finance, HR, operations, and other legal management disciplines.

Question 2

A legal administrator learns during a staff meeting that a client's case result will be announced publicly. Sharing this information with a friend who trades stocks would constitute:

Accepted Answer

A breach of confidentiality and potentially illegal insider trading

Answer

Sharing non-public client information for financial gain violates confidentiality duties and securities laws.

Question 3

Which scenario represents a 'conflict of interest' for a legal administrator?

Accepted Answer

Overseeing vendor contracts where the administrator's spouse owns a stake in one vendor

Answer

A financial interest held by a family member in a vendor creates a conflict requiring disclosure and recusal.

Question 4

The ALA's emphasis on 'integrity' in professional conduct primarily means:

Accepted Answer

Acting consistently with honesty and strong moral principles even under pressure

Answer

Integrity means adhering to ethical principles honestly and consistently, regardless of external pressures.

Question 5

A legal administrator is asked by a managing partner to alter financial records to present a more favorable picture to the firm's lender. The administrator should:

Accepted Answer

Refuse and document the request, escalating to ethics counsel or the firm's board

Answer

Altering financial records constitutes fraud; the administrator must refuse and escalate through proper channels.

(ALA) Association of Legal Administrators CLM Practice Test

(ALA) Association of Legal Administrators CLM Practice Test

ALA Professional Ethics and Conduct 3