NM Bar NM Bar Professional Development 3 — Questions and Answers
Question 1: Under New Mexico Rule 1.8, an attorney wishes to enter into a business transaction with a current client. Which of the following is NOT required for the transaction to be permissible?
- The terms must be fair and reasonable to the client
- The client must be advised in writing to seek independent counsel
- The client must give informed consent in a signed writing
- The transaction must be approved by the State Bar of New Mexico (Correct answer)
Correct answer: The transaction must be approved by the State Bar of New Mexico
Rule 1.8(a) requires fair terms, written advice to seek independent counsel, and written informed consent — State Bar approval is not required.
Question 2: A New Mexico attorney representing a corporation is asked by the corporation's CEO to keep a regulatory violation secret from the board of directors. The attorney should:
- Follow the CEO's instructions because the CEO is her primary contact
- Recognize that the client is the corporation and consider reporting up the chain to the board (Correct answer)
- Immediately withdraw from the representation
- Report the violation directly to the relevant regulatory agency
Correct answer: Recognize that the client is the corporation and consider reporting up the chain to the board
Under Rule 1.13, the client is the organization itself, and an attorney must report up the chain of authority when an agent acts contrary to the organization's interests.
Question 3: Which of the following activities is permissible under New Mexico's rules governing lawyer advertising?
- Claiming to be a 'specialist' in criminal law without board certification
- Guaranteeing a specific litigation outcome to prospective clients
- Using a trade name for a law firm that is not false or misleading (Correct answer)
- Sending targeted direct mail to accident victims within 30 days of the accident
Correct answer: Using a trade name for a law firm that is not false or misleading
Rule 7.5 permits law firm trade names as long as they are not false or misleading, while outcome guarantees and improper specialization claims violate other rules.
Question 4: A New Mexico attorney handling a personal injury case on contingency receives a settlement offer. Without consulting the client, the attorney rejects the offer because she believes it is too low. Under the Rules of Professional Conduct, the attorney has:
- Acted properly by exercising professional judgment on behalf of the client
- Violated Rule 1.2 because the decision to settle belongs to the client (Correct answer)
- Acted properly because contingency fee agreements give the attorney settlement authority
- Violated Rule 1.4 only if she failed to inform the client within 30 days
Correct answer: Violated Rule 1.2 because the decision to settle belongs to the client
Rule 1.2(a) reserves the decision to accept or reject a settlement offer to the client; the attorney must communicate offers and obtain the client's decision.
Question 5: An attorney admitted in Texas moves to New Mexico and begins practicing without applying for New Mexico admission. After six months a colleague reports her. Under New Mexico law, this conduct constitutes:
- A minor ethical lapse subject only to a written warning
- Unauthorized practice of law, which is both a crime and an ethics violation (Correct answer)
- Permissible practice under interstate reciprocity principles
- A violation only if the attorney collects fees from New Mexico clients
Correct answer: Unauthorized practice of law, which is both a crime and an ethics violation
Practicing law without admission in New Mexico is unauthorized practice of law under NMSA § 36-2-28 and also violates Rule 5.5 of the Rules of Professional Conduct.
Question 6: Under New Mexico's Rules of Professional Conduct, a lawyer appointed to represent an indigent criminal defendant who the lawyer believes is guilty should:
- Withdraw from the case to avoid assisting wrongdoing
- Inform the court of the client's likely guilt to ensure a fair proceeding
- Provide zealous representation while complying with the Rules of Professional Conduct (Correct answer)
- Negotiate a guilty plea immediately to minimize harm
Correct answer: Provide zealous representation while complying with the Rules of Professional Conduct
The attorney's personal belief about guilt does not reduce the duty of zealous advocacy; the lawyer must represent the client fully within the bounds of the Rules.
Question 7: A New Mexico lawyer receives an email from opposing counsel in a pending case containing documents clearly marked 'Privileged and Confidential — Attorney Work Product' that were sent inadvertently. The lawyer's first obligation is to:
- Review the documents immediately to gain any available advantage
- Notify opposing counsel of the inadvertent disclosure promptly (Correct answer)
- File the documents with the court as evidence of the opposing party's strategy
- Seek a court order authorizing use of the documents before notifying anyone
Correct answer: Notify opposing counsel of the inadvertent disclosure promptly
Rule 4.4(b) requires a lawyer who receives inadvertently sent documents to promptly notify the sender so the sender can take protective measures.
NM Bar NM Bar Professional Development 3
Under New Mexico Rule 1.8, an attorney wishes to enter into a business transaction with a current client.
Which of the following is NOT required for the transaction to be permissible?