NM Bar NM Bar Professional Development 3

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?

Accepted Answer

The transaction must be approved by the State Bar of New Mexico

Answer

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:

Accepted Answer

Recognize that the client is the corporation and consider reporting up the chain to the board

Answer

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?

Accepted Answer

Using a trade name for a law firm that is not false or misleading

Answer

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:

Accepted Answer

Violated Rule 1.2 because the decision to settle belongs to the client

Answer

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:

Accepted Answer

Unauthorized practice of law, which is both a crime and an ethics violation

Answer

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.

(NM Bar) New Mexico Bar Exam Practice Test

(NM Bar) New Mexico Bar Exam Practice Test

NM Bar NM Bar Professional Development 3