Professional Ethics & Standards Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Ethics & Standards flashcards as text
A bankruptcy administrator who discovers that estate property has been transferred to a relative of the debtor post-petition should first:
Answer: File a motion to avoid the transfer under § 549 after consulting with the trustee
Post-petition transfers made without court authorization are avoidable under § 549, and the proper remedy is a formal avoidance action, not unilateral demands or unsupervised settlements.
Which of the following best describes the ethical significance of a 'nunc pro tunc' employment order in bankruptcy?
Answer: It signals that proper disclosure and court approval were not obtained timely and courts scrutinize them closely
Nunc pro tunc orders retroactively authorize employment when timely approval was not sought, and courts scrutinize them closely because they may reflect a failure of professional responsibility.
An estate professional who bills for 'lumped' time entries combining multiple tasks risks having fees:
Answer: Reduced or disallowed because the court cannot assess necessity and reasonableness
Block billing or lumped time entries prevent courts from evaluating whether individual tasks were necessary, so courts frequently reduce or disallow fees that cannot be independently assessed.
A trustee who sells estate assets to a company in which the trustee holds a minority ownership interest without court approval violates which rule?
Answer: 11 U.S.C. § 363(b) and the trustee's fiduciary duty against self-dealing
Selling estate assets to an entity in which the trustee has an interest without court approval violates § 363 and the trustee's core fiduciary duty to avoid self-dealing.
When a creditor's attorney engages in ex parte communication with the bankruptcy judge about a pending contested matter, this conduct:
Answer: Constitutes a serious ethical violation that undermines judicial impartiality
Ex parte communications with the court about contested matters violate the Rules of Professional Conduct because they deprive opposing parties of notice and opportunity to respond.
A bankruptcy professional's obligation to maintain competence under professional responsibility standards specifically requires:
Answer: Keeping current with developments in bankruptcy law and related practice areas
Competence is a continuing duty that requires professionals to stay current with legal developments, changes in rules, and evolving best practices in their field.
Which scenario constitutes an impermissible fee-sharing arrangement under professional conduct rules in a bankruptcy case?
Answer: Paying a non-lawyer referral source a percentage of fees earned from referred bankruptcy clients
Sharing legal fees with non-lawyers is prohibited by professional conduct rules because it creates incentives that may compromise the lawyer's independent professional judgment.