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New Zealand Law and Practice Examination study materials
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New Zealand Law and Practice Examination practice questions

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Question 1New Zealand Law

Under the Lawyers and Conveyancers Act 2006, which body is responsible for receiving and investigating complaints about the professional conduct of lawyers?

  1. The New Zealand Law Society's Lawyers Standards Committee Correct answer.
  2. The Judicial Conduct Commissioner
  3. The Ministry of Justice
  4. The Law Commission

Explanation

The Lawyers and Conveyancers Act 2006 establishes Lawyers Standards Committees, administered through the New Zealand Law Society, to receive and investigate complaints about lawyers' conduct and to impose penalties where appropriate. The other bodies listed have no statutory role in disciplining practising lawyers.

Question 2New Zealand Law

In New Zealand, the fundamental obligation to act in the client's best interests under the Lawyers and Conveyancers Act 2006 is subject to which overriding qualification?

  1. The lawyer's duty to the court and to the administration of justice Correct answer.
  2. The lawyer's membership of a particular law firm
  3. The lawyer's entitlement to charge fees at market rates
  4. The client's ability to pay the retainer in advance

Explanation

The Act and the Rules of Conduct and Client Care make clear that a lawyer's duties to the client are subject to the lawyer's overriding duty to the court and the administration of justice. This reflects the lawyer's role as an officer of the court, so client interests cannot justify misleading the court.

Question 3New Zealand Law

A lawyer discovers that a client has provided a document that the lawyer believes is false and intended to mislead the court. Under the Rules of Conduct and Client Care, what is the lawyer's primary obligation?

  1. Disclose the client's instructions in full to the court immediately
  2. Decline to use the document and, if necessary, advise the court of the position without disclosing privileged communications Correct answer.
  3. Withdraw from acting without telling the court anything
  4. Continue to rely on the document because the client instructed it be used

Explanation

A lawyer must not mislead the court and must not use evidence the lawyer knows to be false. The lawyer should decline to rely on the document and may need to inform the court that a document can no longer be relied on, while preserving legal privilege over the client's communications.

Question 4New Zealand Law

Which of the following best describes the operation of legal professional privilege in New Zealand?

  1. It protects confidential communications between a lawyer and client made for the purpose of obtaining or giving legal advice Correct answer.
  2. It protects all communications a client has with anyone about a legal matter
  3. It can be waived by the lawyer without the client's consent
  4. It applies only to communications made after proceedings have been filed

Explanation

Legal professional privilege, now largely codified in the Evidence Act 2006, protects confidential communications between a client and a legal adviser for the purpose of obtaining or giving legal advice. The privilege belongs to the client and can be waived by the client, not unilaterally by the lawyer.

Question 5New Zealand Law

A client tells a lawyer during a consultation that they intend to commit a serious violent offence. How does the lawyer's duty of confidentiality apply?

  1. The lawyer may disclose information where necessary to prevent a serious offence, consistent with the permitted exceptions to confidentiality Correct answer.
  2. The lawyer must report the client to the New Zealand Law Society
  3. The lawyer must immediately publish the information to protect the public
  4. Confidentiality is absolute and the lawyer must remain silent in all circumstances

Explanation

Confidentiality is a core duty but is not absolute; the Rules permit disclosure where necessary to prevent a serious offence or to protect a person from serious harm. The lawyer should consider whether disclosure is justified and, where possible, encourage the client to act lawfully first.

Question 6New Zealand Law

Which of the following interests gives rise to a conflict of interest that a lawyer must manage under the Rules of Conduct and Client Care?

  1. The lawyer's personal financial interest in a transaction the client is entering into Correct answer.
  2. The client's choice of a different barrister for court appearances
  3. The client's decision to change accountants
  4. The client's request for a written fee estimate

Explanation

A lawyer must not act where the lawyer's own interests conflict with the client's interests, including personal financial interests in the client's transaction. Such conflicts must be identified, disclosed and managed, or the retainer declined.

Question 7New Zealand Law

A lawyer is instructed by two clients who are co-defendants in a criminal matter and whose defences may diverge. What is the appropriate course under the conduct rules?

  1. Act for both because they have both agreed to share the lawyer
  2. Decline to act for both if the defences are or may become incompatible, and advise them to obtain separate representation Correct answer.
  3. Act for both and keep each client's information secret from the other
  4. Act for whichever client pays the higher fee

Explanation

A lawyer must not act for two clients where their interests are incompatible or where there is a real risk that the lawyer's duties to one will conflict with duties to the other. Co-defendants whose defences may diverge should be separately represented.

Question 8New Zealand Law

Under the Lawyers and Conveyancers Act 2006, when must a lawyer provide a client with a written retainer or terms of engagement?

  1. Only when the client is a company rather than an individual
  2. Only when the matter goes to court
  3. Before or at the time the lawyer commences acting, in accordance with the Act and Rules Correct answer.
  4. Only after the lawyer has issued the first invoice

Explanation

The Act requires a lawyer to have a retainer in writing, and the Rules require the lawyer to provide the client with information in writing about the terms of engagement, including fees, before or when acting begins. This supports informed client decisions about the engagement.

Question 9New Zealand Law

A lawyer acting for a client in a conveyancing transaction is also asked to act for the lender in the same transaction. What is the principal concern under the conduct rules?

  1. There is a potential conflict between the borrower and lender, requiring informed consent and independent advice or separate representation Correct answer.
  2. The lawyer may charge two fees, which is prohibited
  3. The lawyer must refer the matter to the Registrar-General of Land
  4. The lawyer must act for both because conveyancing is a routine matter

Explanation

Acting for both borrower and lender can create a conflict because their interests in the transaction may differ, particularly regarding the security and the borrower's ability to repay. The lawyer must consider whether informed consent is available or whether separate representation is required.

Question 10New Zealand Law

Which of the following is a fundamental obligation of a lawyer under the Lawyers and Conveyancers Act 2006 in relation to client money held in a trust account?

  1. Client funds must be held in a separate trust account and accounted for in accordance with the Act and regulations Correct answer.
  2. Client funds may be commingled with the firm's general account if recorded in the ledger
  3. The lawyer may use client funds temporarily to cover the firm's operating expenses
  4. Client funds may be lent to other clients at the lawyer's discretion

Explanation

The Act and the Lawyers and Conveyancers Act (Trust Account) Regulations require client money to be held in a trust account and properly accounted for, with strict record-keeping and audit obligations. Client funds must not be used for the firm's own purposes.

Question 11New Zealand Law

A lawyer receives a payment from a client that includes both fees already invoiced and funds to be held for a future disbursement. How should the lawyer treat the payment under trust account rules?

  1. Deposit the entire amount into the trust account and never transfer fees
  2. Deposit the whole amount into the trust account, then transfer the invoiced fees to the general account upon a proper authority and record the transfer Correct answer.
  3. Deposit the entire amount into the general account and pay the disbursement later
  4. Refuse the payment until the disbursement is due

Explanation

Money received for a client must initially be paid into the trust account. Fees can be transferred to the firm's general account only when properly invoiced and authorised, and the transfer must be recorded in the trust records.

Question 12New Zealand Law

What is the primary purpose of the New Zealand Law Society's continuing professional development (CPD) requirements for practising lawyers?

  1. To generate revenue for the Law Society
  2. To replace the need for a practising certificate
  3. To rank lawyers for promotion within firms
  4. To ensure lawyers maintain and develop the competence necessary for their practice Correct answer.

Explanation

CPD requirements exist to ensure lawyers maintain and enhance the knowledge and skills needed for competent practice. Completing CPD does not replace the separate requirement to hold a current practising certificate.

Question 13New Zealand Law

A lawyer who holds a current practising certificate issued by the New Zealand Law Society wishes to take on a matter outside their area of expertise. What does the conduct framework require?

  1. The lawyer may proceed without any further steps because the practising certificate covers all work
  2. The lawyer must decline every matter outside their principal practice area
  3. The lawyer must obtain the Law Society's prior written approval for each new matter
  4. The lawyer may proceed provided they disclose the limits of their competence and take reasonable steps to become competent or refer the client Correct answer.

Explanation

Lawyers must act competently and must not act where they lack the requisite skill and knowledge unless they can become competent with reasonable steps or the client gives informed consent to the limited expertise. Disclosure and appropriate referral or supervision are key.

Question 14New Zealand Law

Which statement correctly describes the lawyer's duty when a client gives instructions that are lawful but that the lawyer considers unwise?

  1. The lawyer must report the client to the court for giving unwise instructions
  2. The lawyer may refuse to act further without any explanation
  3. The lawyer must follow the client's instructions because the client controls the litigation
  4. The lawyer should advise the client of the risks but must respect the client's decision on how to proceed, subject to the lawyer's duties to the court Correct answer.

Explanation

The client has the right to decide the objectives of the representation, while the lawyer advises on the means and risks. A lawyer should give clear advice but must respect a client's lawful decisions, subject always to the overriding duty to the court.

Question 15New Zealand Law

Under the Evidence Act 2006, which of the following communications is protected by legal advice privilege?

  1. A note the client makes for themselves about a meeting with their bank
  2. A confidential email from the client to their solicitor seeking advice on a contract dispute Correct answer.
  3. A conversation between the client and a friend about the dispute
  4. A letter from the client's accountant to the client about tax planning

Explanation

Legal advice privilege protects confidential communications between a client and a legal adviser for the purpose of obtaining or giving legal advice. The email squarely falls within that category, unlike communications with non-lawyers or personal notes.

Question 16New Zealand Law

A lawyer is asked by a client to draft an affidavit containing statements the lawyer knows to be untrue. What is the lawyer's proper response?

  1. Refuse to include the untrue statements and explain that the lawyer cannot assist in misleading the court Correct answer.
  2. Draft it but add a note to the court that the client is lying
  3. Draft the affidavit as instructed because the client will swear it
  4. Draft it and rely on the client's responsibility for the content

Explanation

A lawyer must not draft or present evidence the lawyer knows to be false. The lawyer should refuse to include false statements and explain the duty not to mislead the court, while maintaining confidentiality over the client's disclosures.

Question 17New Zealand Law

Which of the following best describes the role of the New Zealand Law Society in relation to practising certificates?

  1. It issues certificates only to lawyers employed by the government
  2. It issues practising certificates only to barristers sole
  3. It issues practising certificates to lawyers who meet the requirements set under the Lawyers and Conveyancers Act 2006 Correct answer.
  4. It has no role because certificates are issued by the High Court

Explanation

The New Zealand Law Society administers the practising certificate regime under the Lawyers and Conveyancers Act 2006, issuing certificates to lawyers who satisfy the statutory requirements. The High Court does not issue practising certificates.

Question 18New Zealand Law

A lawyer acts for a client in a negotiation and learns confidential information from the other side during settlement discussions. The client later asks the lawyer to use that information to gain an advantage. What is the appropriate response?

  1. Disclose the information to the court immediately
  2. Use the information because it was disclosed during negotiations
  3. Decline to use the information because it was received in confidence and the lawyer must not take unfair advantage of it Correct answer.
  4. Use the information only if it is not in writing

Explanation

A lawyer who receives confidential information in the course of a matter must not use it to the disadvantage of the person who provided it. Using settlement communications in this way would breach confidence and fair dealing obligations.

Question 19New Zealand Law

Which of the following is required for a valid will under New Zealand law?

  1. The will must be signed by the testator and witnessed by two witnesses present at the same time Correct answer.
  2. The will must be prepared by a lawyer
  3. The will must be typed rather than handwritten
  4. The will must be registered with the High Court

Explanation

The Wills Act 2007 requires a will to be in writing, signed by the testator, and witnessed by at least two witnesses who are present together and attest the signature. A will need not be prepared by a lawyer, registered, or typed.

Question 20New Zealand Law

A person dies intestate leaving a spouse and two children. Under the Administration Act 1969, how is the estate distributed in broad terms?

  1. The entire estate passes to the spouse
  2. The estate passes to the Crown because there is no will
  3. The spouse receives a statutory legacy plus a share, and the residue is shared between the spouse and the children Correct answer.
  4. The entire estate is divided equally between the children

Explanation

On an intestacy under the Administration Act 1969, where a spouse and children survive, the spouse receives a statutory legacy and a share of the residue, with the remainder shared among the children. The estate does not pass wholly to the spouse or wholly to the children.

Question 21New Zealand Law

Which of the following best describes the effect of the Property (Relationships) Act 1976 on the division of relationship property on separation?

  1. Relationship property is divided equally unless there are extraordinary circumstances justifying a different division Correct answer.
  2. The court must always award the family home to the primary caregiver
  3. The Act applies only to married couples, not to de facto partners
  4. Each party keeps only property in their own name

Explanation

The Property (Relationships) Act 1976 creates a presumption that relationship property is divided equally on separation, subject to limited exceptions for extraordinary circumstances. The Act applies to qualifying de facto relationships as well as marriages and civil unions.

Question 22New Zealand Law

A lawyer is instructed to act for a client in a civil dispute and the client asks the lawyer to delay service of proceedings to gain tactical advantage. What is the lawyer's professional obligation?

  1. Follow the rules of court and the lawyer's duty not to abuse process, advising the client against improper delay Correct answer.
  2. Report the client to the New Zealand Law Society for misconduct
  3. Delay service indefinitely because the client has paid a retainer
  4. Comply because the client dictates litigation tactics

Explanation

A lawyer must not abuse court processes and must comply with the rules of court and directions. Deliberate improper delay is inconsistent with the lawyer's duty to the court and the administration of justice, so the lawyer should advise against it and act properly.

Question 23New Zealand Law

Which of the following statements about the lawyer's duty to account to the client is correct?

  1. A lawyer may deduct fees without any invoice or record
  2. A lawyer may apply client funds to another client's debt without authority
  3. A lawyer may keep a client's funds if the client does not ask for them within one year
  4. A lawyer must render a proper account of fees and disbursements and refund any surplus client money Correct answer.

Explanation

Lawyers must provide proper accounts for fees and disbursements and must account to clients for money held on their behalf, refunding any surplus. Fees must be rendered on a proper basis and deductions must be authorised and recorded.

Question 24New Zealand Law

A lawyer discovers that a former client's confidential information is relevant to a new matter involving a different client. What does the conduct framework require?

  1. The lawyer must destroy all records of the former client
  2. The lawyer may use the former client's information freely because the retainer has ended
  3. The lawyer must always act for the new client regardless of the risk
  4. The lawyer must not act for the new client if the lawyer's knowledge of the former client's information creates a real risk of misuse, unless informed consent is obtained or effective safeguards exist Correct answer.

Explanation

The duty of confidentiality continues after the retainer ends. A lawyer must not act where there is a real risk that confidential information from a former client could be used against them, unless the former client gives informed consent or effective information barriers are in place.

Question 25New Zealand Law

Which of the following is the correct description of the standard of proof in a New Zealand criminal trial?

  1. The defendant must prove innocence beyond reasonable doubt
  2. The prosecution must prove guilt on the balance of probabilities
  3. The jury must be satisfied on a preponderance of evidence
  4. The prosecution must prove guilt beyond reasonable doubt Correct answer.

Explanation

In a criminal trial the prosecution bears the burden of proving each element of the offence beyond reasonable doubt. The balance of probabilities applies in civil proceedings, and the defendant does not bear the burden of proving innocence.

Question 26New Zealand Law

Under the Lawyers and Conveyancers Act 2006, which body is responsible for receiving and investigating complaints about the conduct of lawyers?

  1. The Ministry of Justice, acting through the Legal Services Commissioner
  2. The New Zealand Law Society's Lawyers Complaints Service, with determinations made by Lawyers and Conveyancers Act 2006 standards committees Correct answer.
  3. The District Court, which hears all complaints at first instance
  4. The Human Rights Commission, exercising jurisdiction over professional conduct

Explanation

The Lawyers and Conveyancers Act 2006 establishes standards committees convened by the New Zealand Law Society to receive and investigate complaints about lawyers, with the Legal Complaints Review Officer providing independent review. Courts are not the first port of call for conduct complaints.

Question 27New Zealand Law

A lawyer holds client funds in a trust account. Which statement correctly describes the lawyer's obligations regarding those funds under the Lawyers and Conveyancers Act (Lawyers: Nominee Company) and related trust account rules?

  1. Client funds may be used to pay outstanding fees without the client's authority
  2. Client funds may be deposited into the firm's general business account provided records are kept
  3. Client funds must be held in a separate trust account and accounted for in accordance with the trust account regulations Correct answer.
  4. Client funds may be pooled with the lawyer's own funds provided an annual audit occurs

Explanation

Trust account rules require client money to be held separately from the practice's own money and dealt with strictly according to the regulations, with proper record-keeping and audit. Using client funds for the lawyer's own purposes without authority is a serious breach.

Question 28New Zealand Law

A lawyer is instructed to act for a client in a transaction where the lawyer has a personal financial interest in the other party. What is the lawyer's primary obligation?

  1. Refer the matter to the Law Society before doing any work
  2. Proceed without disclosure because personal interests are private
  3. Disclose the conflict to the client and obtain informed consent, or decline the engagement if the conflict cannot be managed Correct answer.
  4. Proceed with the transaction provided the lawyer charges a reduced fee

Explanation

The Rules of Conduct and Client Care require a lawyer to identify conflicts between the lawyer's own interests and the client's interests, disclose them, and obtain informed consent or decline to act. A personal financial stake that could influence advice is a classic conflict.

Question 29New Zealand Law

Which of the following best describes the lawyer's duty of confidentiality to a client under the Lawyers and Conveyancers Act 2006 and the Rules of Conduct and Client Care?

  1. The duty ends when the retainer is terminated
  2. The duty continues after the retainer ends and may only be breached where disclosure is required by law or permitted to prevent serious harm Correct answer.
  3. The duty applies only to information the client expressly labels confidential
  4. The duty is overridden whenever another client requests the information

Explanation

Confidentiality survives the end of the retainer and is a continuing obligation. Disclosure is permitted only in limited circumstances, such as where required by law or to prevent a serious risk of harm.

Question 30New Zealand Law

A client instructs a lawyer to commence proceedings that the lawyer considers have no reasonable prospect of success. What is the lawyer's proper course?

  1. Advise the client candidly of the weakness of the case and decline to file proceedings that lack a proper basis Correct answer.
  2. File the proceedings but note the weakness to the court at the first call
  3. File the proceedings because the client is entitled to have their case heard
  4. File the proceedings only if the client pays costs in advance

Explanation

A lawyer must not initiate proceedings that lack a proper basis and must give the client honest advice about the merits. The lawyer's duty to the court and to the administration of justice overrides a client's wish to litigate a hopeless claim.

Question 31New Zealand Law

Under the Lawyers and Conveyancers Act 2006, what is the effect of a lawyer providing regulated services without a current practising certificate?

  1. The lawyer may continue provided the client is informed
  2. The lawyer commits an offence and may be subject to disciplinary and criminal consequences Correct answer.
  3. The lawyer may continue if supervised by a certificated practitioner
  4. The lawyer may continue for up to three months without a certificate

Explanation

Providing regulated services without a current practising certificate is an offence under the Act and exposes the practitioner to disciplinary consequences. There is no general grace period or client-consent exception.

Question 32New Zealand Law

A lawyer acts for a client in a dispute and is served with a witness summons requiring the lawyer to give evidence about matters learned in the retainer. What is the lawyer's position?

  1. The lawyer must refuse to attend the hearing altogether
  2. The lawyer may attend but must answer only questions the client approves
  3. The lawyer may be compelled to give evidence but should claim privilege over confidential communications where the client has not waived it Correct answer.
  4. The lawyer must disclose all client communications because a summons overrides privilege

Explanation

A witness summons must be complied with, but legal professional privilege belongs to the client and the lawyer should assert it over confidential communications unless waived. The lawyer cannot simply ignore the summons.

Question 33New Zealand Law

Which of the following statements correctly describes the lawyer's duty to maintain client care and conduct information under the Rules of Conduct and Client Care?

  1. The lawyer need only provide this information if the client asks
  2. The lawyer must provide the client with information about the terms of engagement, fees, and the client's rights in a timely manner Correct answer.
  3. The lawyer may withhold fee information until the matter concludes
  4. The lawyer must provide this information only to clients who are legally aided

Explanation

The rules require lawyers to give clients clear and timely information about the basis of the engagement, fees, and their rights, including how to complain. This supports informed decision-making and transparency.

Question 34New Zealand Law

A lawyer is instructed by a client to act in a matter in which the lawyer previously acted for the opposing party on a substantially related matter. What is the central issue the lawyer must address?

  1. Whether the lawyer possesses confidential information from the former client that could be used against them Correct answer.
  2. Whether the new client is able to pay a higher fee
  3. Whether the former client has paid all outstanding fees
  4. Whether the court has granted leave for the new retainer

Explanation

The key concern is whether the lawyer holds confidential information from the former client that is relevant to the new matter and could prejudice them. If so, the lawyer must decline unless the former client gives informed consent.

Question 35New Zealand Law

Which of the following statements about a lawyer's obligation to hold money for a client in a trust account is correct under New Zealand trust account rules?

  1. Client money may be held in the lawyer's personal bank account if records are kept
  2. Client money must be paid into a trust account promptly and must not be used for the lawyer's own purposes Correct answer.
  3. Client money may be invested in the firm's business to generate returns for the client
  4. Client money may be lent to other clients of the firm

Explanation

Trust account rules require prompt banking of client money into a trust account and prohibit its use for the lawyer's own purposes. Misapplication of trust funds is a serious disciplinary matter.

Question 36New Zealand Law

A lawyer is asked to act for a client in a family matter where the lawyer's spouse is the opposing party's lawyer. What is the appropriate course?

  1. Proceed but charge a reduced fee to reflect the relationship
  2. Assess whether the relationship creates a conflict or risk of breach of confidentiality and, if so, decline the retainer Correct answer.
  3. Proceed because the spouse's role is separate from the lawyer's own practice
  4. Proceed provided the spouses do not discuss the case at home

Explanation

Relationships that create a real or perceived risk of breaching confidentiality or compromising independence must be assessed, and if the risk cannot be managed the retainer should be declined. An undertaking not to discuss the case at home is not sufficient protection.

Question 37New Zealand Law

Which of the following best describes the standard of proof applied in a New Zealand civil proceeding?

  1. The balance of probabilities Correct answer.
  2. The preponderance of the evidence beyond any doubt
  3. Beyond reasonable doubt
  4. Clear and convincing evidence in all civil cases

Explanation

In civil proceedings the standard is the balance of probabilities, meaning the court must be satisfied that a fact is more likely than not. Beyond reasonable doubt applies in criminal proceedings.

Question 38New Zealand Law

A lawyer receives a court judgment that is adverse to the client and the client wishes to appeal. What is the lawyer's obligation regarding advice on appeal?

  1. Decline to advise on appeal because the trial is over
  2. Advise the client on the merits of an appeal and the applicable time limits, and act promptly if instructed Correct answer.
  3. Advise the client that appeals are only available in criminal matters
  4. File an appeal automatically in every adverse case

Explanation

A lawyer should advise the client candidly about appeal prospects and the strict time limits that apply, then act promptly if instructed. There is no automatic obligation to appeal every adverse judgment.

Question 39New Zealand Law

Under the Lawyers and Conveyancers Act 2006, which of the following is a fundamental obligation of a lawyer in relation to the client's instructions?

  1. To prioritise the lawyer's commercial interests over the client's
  2. To act competently and diligently in accordance with the client's lawful instructions Correct answer.
  3. To defer to the opposing party where a dispute arises
  4. To follow every instruction regardless of its lawfulness

Explanation

Lawyers must act competently and diligently on the client's lawful instructions. Instructions that would require unlawful or improper conduct must be refused, and the lawyer's own interests must not take priority.

Question 40New Zealand Law

A lawyer discovers that a client has provided a document that appears to be forged. What is the lawyer's proper response?

  1. Destroy the document without informing anyone
  2. Alter the document to remove the forgery
  3. Use the document because the client provided it
  4. Raise the concern with the client and, if satisfied it is forged, decline to use it and consider whether to withdraw Correct answer.

Explanation

A lawyer must not use evidence the lawyer knows to be false or forged and should raise the issue with the client. If the client insists on using it, the lawyer may need to withdraw, taking care not to mislead the court.

Question 41New Zealand Law

Which of the following statements correctly describes the role of the Legal Complaints Review Officer (LCRO) in New Zealand's lawyer disciplinary system?

  1. The LCRO issues practising certificates to lawyers
  2. The LCRO hears criminal charges against lawyers
  3. The LCRO prosecutes lawyers before the High Court
  4. The LCRO independently reviews decisions of standards committees on complaints Correct answer.

Explanation

The Legal Complaints Review Officer provides independent review of standards committee decisions, giving complainants and practitioners a review avenue. Prosecutions and practising certificates are handled through other mechanisms.

Question 42New Zealand Law

A lawyer is instructed to act for two clients who are vendors of a property being sold to a purchaser who is a company in which the lawyer holds shares. What is the lawyer's obligation?

  1. Proceed only if the purchaser agrees to a higher price
  2. Proceed without disclosure because shareholdings are private
  3. Proceed because the lawyer is acting only for the vendors
  4. Disclose the interest to the clients and obtain informed consent, or decline to act if the conflict cannot be managed Correct answer.

Explanation

A lawyer with a personal interest in the other party must disclose that interest to the client and obtain informed consent, or decline the retainer if the conflict cannot be managed. Acting for only one side does not remove the conflict.

Question 43New Zealand Law

Which of the following best describes a lawyer's duty when a client instructs the lawyer to write a letter containing a statement the lawyer knows to be false?

  1. The lawyer must include it because the client takes responsibility for the content
  2. The lawyer must refuse to include the false statement and should advise the client accordingly Correct answer.
  3. The lawyer should include it but mark the letter without prejudice
  4. The lawyer should include it only if the client signs the letter personally

Explanation

A lawyer must not make or adopt statements the lawyer knows to be false or misleading. The duty of honesty and the duty to the court and to third parties require refusal, with advice to the client about lawful alternatives.

Question 44New Zealand Law

A lawyer is acting for a client in a criminal trial and the client insists on giving evidence that the lawyer knows is false. What is the lawyer's proper course?

  1. Decline to call the client to give that evidence and, if the client persists, seek to withdraw Correct answer.
  2. Call the client and allow the false evidence to be given
  3. Refuse to continue representing the client without any further steps
  4. Call the client but tell the jury in closing that the client lied

Explanation

A lawyer must not present evidence known to be false and should try to persuade the client not to give it. If the client insists, the lawyer should seek to withdraw, following the proper procedure rather than simply abandoning the client.

Question 45New Zealand Law

Which of the following statements correctly describes the obligation of a lawyer who holds money on behalf of a client and receives a bill of costs for fees?

  1. The lawyer may draw fees without authority if the amount is small
  2. The lawyer may draw fees only after the client's death
  3. The lawyer may draw fees from trust funds only with proper authority and after rendering an invoice Correct answer.
  4. The lawyer may draw fees at any time without an invoice

Explanation

Fees may be drawn from trust funds only when properly authorised, typically after an invoice has been rendered and in accordance with the client's authority. Unauthorised drawings are a serious trust account breach.

Question 46New Zealand Law

A lawyer is asked to act for a client in a matter where the lawyer's own previous conduct is likely to be a significant issue in the proceedings. What is the appropriate course?

  1. Accept the retainer and disclose the involvement only at trial
  2. Accept the retainer and rely on the client's waiver
  3. Accept the retainer but avoid giving evidence
  4. Decline the retainer because the lawyer's personal involvement creates a conflict Correct answer.

Explanation

Where the lawyer's own conduct is likely to be a central issue, the lawyer has a conflict between personal interests and the client's interests and should decline. A client waiver does not remove the risk of compromised representation.

Question 47New Zealand Law

Which of the following best describes the lawyer's duty to the court when the lawyer becomes aware of a relevant authority that is adverse to the client's case?

  1. The lawyer must bring the adverse authority to the court's attention Correct answer.
  2. The lawyer may suppress the authority if the opponent has not found it
  3. The lawyer may disclose it after judgment is delivered
  4. The lawyer may mention it only if the judge asks

Explanation

A lawyer has a duty of candour to the court and must draw the court's attention to relevant adverse authorities. The duty to the court overrides the desire to present only favourable material.

Question 48New Zealand Law

Under the Lawyers and Conveyancers Act 2006, which of the following persons may be required to hold a practising certificate to provide regulated services?

  1. A lawyer providing regulated services to the public Correct answer.
  2. A law clerk performing administrative tasks under supervision
  3. A legal executive employed by a firm
  4. A paralegal preparing drafts for review by a lawyer

Explanation

A practising certificate is required by lawyers who provide regulated services. Administrative and support roles performed under supervision do not themselves require the holder to hold a practising certificate.

Question 49New Zealand Law

A lawyer acts for a client in a transaction and the client offers a gift of significant value in appreciation of the lawyer's work. What is the lawyer's proper response?

  1. Accept the gift and record it as income
  2. Accept the gift only if other clients are told
  3. Consider whether accepting the gift creates a conflict or appearance of impropriety and decline if it does Correct answer.
  4. Accept the gift because it is freely offered

Explanation

A lawyer must consider whether accepting a substantial gift could compromise independence or create an appearance of impropriety, and should decline if it does. Gifts from clients can raise conflict concerns and should be handled cautiously.

Question 50New Zealand Law

Which of the following statements correctly describes the effect of the Evidence Act 2006 on the privilege attaching to communications between a lawyer and client for the purpose of obtaining legal advice?

  1. Such communications lose privilege once the retainer ends
  2. Such communications are privileged and the client may waive the privilege Correct answer.
  3. Such communications are privileged only if the lawyer is a barrister sole
  4. Such communications are privileged only in criminal proceedings

Explanation

Legal advice privilege protects confidential communications between lawyer and client for the purpose of obtaining legal advice, and the privilege belongs to the client, who may waive it. It is not limited to criminal proceedings or to barristers sole.