Transactions with Non-Clients Flashcards

A lawyer representing a defendant in litigation wants to contact witnesses who are employees of the plaintiff corporation. Under Rule 4.2, the lawyer:

Answer: Must obtain consent of the corporation's counsel before contacting managerial employees

Rule 4.2 bars ex parte contact with represented organization members whose acts may be imputed to the organization or who supervise the matter without consent of the organization's counsel.

A lawyer learns from a client that the client's business partner (not a party to any lawsuit) is about to fraudulently transfer assets to evade a creditor. The lawyer may:

Answer: Advise the client on the legal consequences and whether to proceed

The lawyer may counsel the client about the legal ramifications of the partner's planned fraud but cannot unilaterally warn third parties without client consent or a permitted disclosure exception.

An attorney is assisting a client in what the attorney reasonably believes will constitute a crime. The attorney discovers mid-representation that the client's instructions will harm a third-party non-client. The attorney must:

Answer: Withdraw if continued assistance would violate the Rules of Professional Conduct

A lawyer must withdraw when continued representation would require the lawyer to assist in conduct that violates the Rules of Professional Conduct, including facilitating crimes that harm third parties.

A lawyer conducting due diligence for a client discovers that the target company has made material misrepresentations to third-party investors. The lawyer's obligations include:

Answer: Advising the client of the discovered misrepresentations and their legal implications

A lawyer must advise the client of discovered legal issues but generally cannot disclose to third parties without the client's consent unless an exception applies.

A lawyer sends a collection letter to a non-client debtor containing a false threat that a lawsuit will be filed immediately when in fact no such lawsuit is planned. This violates:

Answer: Rule 4.1, which prohibits false statements of material fact to third parties

Rule 4.1 prohibits a lawyer from knowingly making false statements of material fact to third persons, including in collection correspondence.

Which of the following best describes when a lawyer may give legal advice to an unrepresented person on the other side of a transaction?

Answer: Only to advise the person to obtain independent counsel

Rule 4.3 limits a lawyer's advice to an unrepresented adverse party to recommending that the person obtain independent legal counsel.

A lawyer representing a lender in a mortgage transaction is also asked by the unrepresented borrower to review the loan documents on the borrower's behalf. The lawyer should:

Answer: Decline and advise the borrower to obtain independent counsel

Representing both the lender and borrower in the same transaction would create a conflict of interest, and Rule 4.3 requires the lawyer to advise the unrepresented borrower to get separate counsel.