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PP Paralegal practice questions

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Question 1Ethics and Professional Responsibility

A client calls the firm and asks a paralegal, "Do you think I should take the $40,000 settlement offer?" What is the paralegal's most appropriate response?

  1. Decline to give the opinion and refer the client to the attorney. Correct answer.
  2. Ask the client to sign a waiver before giving an opinion.
  3. Research comparable verdicts and recommend which offer the client should accept.
  4. Tell the client to accept because the offer is reasonable.

Explanation

Deciding whether to accept a settlement requires applying legal judgment to the client's specific facts, which is the practice of law reserved to licensed attorneys. A paralegal may gather and relay factual information but must route requests for legal advice to the supervising lawyer.

Question 2Ethics and Professional Responsibility

A paralegal leaves a law firm for a job at a local bank. Which statement best describes the paralegal's continuing duty of confidentiality?

  1. It applies only if the paralegal signed a written confidentiality agreement with the firm.
  2. It ends when the paralegal's employment with the firm ends.
  3. It continues after employment ends and bars disclosing client information. Correct answer.
  4. It continues only for matters the paralegal personally handled.

Explanation

The confidentiality obligation follows the person rather than the payroll; a nonlawyer assistant's duty derives from the lawyer's duty under Model Rule 1.6 and survives departure from the firm. The duty covers all information relating to the representation, not merely matters the paralegal handled personally, and it does not depend on a signed agreement.

Question 3Ethics and Professional Responsibility

Under the ABA Model Rules, who bears professional responsibility for the ethical conduct of a paralegal working on a client matter?

  1. The client, who chose to have paralegal assistance on the matter.
  2. The paralegal alone, since each person answers for their own conduct.
  3. The firm's managing partner, regardless of who supervises the work.
  4. The supervising lawyer, who must ensure compliant conduct. Correct answer.

Explanation

Model Rule 5.3 requires a lawyer with direct supervisory authority to make reasonable efforts to ensure that a nonlawyer assistant's conduct is compatible with the lawyer's professional obligations. The paralegal remains personally accountable as well, but the rule-based responsibility for supervision rests on the supervising lawyer.

Question 4Ethics and Professional Responsibility

A prospective client asks a paralegal at a small firm to "take my case." Which action is proper for the paralegal?

  1. Accept the case if the client signs a fee agreement with the paralegal.
  2. Agree to take the case and inform the attorney afterward.
  3. Accept the case, then have the attorney review the file later.
  4. Tell the client that only a licensed lawyer can accept the case. Correct answer.

Explanation

Forming an attorney-client relationship is the lawyer's act; a paralegal may not contract for legal services or promise representation. The proper course is to make clear that only a licensed lawyer can accept the matter and to route the client to the attorney.

Question 5Ethics and Professional Responsibility

Which task may a paralegal properly perform when a new client retains the firm?

  1. Decide whether the client qualifies for a reduced fee.
  2. Set the amount of the retainer based on the client's ability to pay.
  3. Explain the firm's hourly rate and billing schedule to the client. Correct answer.
  4. Negotiate the contingency percentage with the client.

Explanation

Setting, negotiating, or adjusting fees is the lawyer's prerogative, but conveying a fee schedule the lawyer has already established is a communication a paralegal may handle. The line falls between relaying decisions the lawyer made and making those decisions.

Question 6Ethics and Professional Responsibility

A client asks whether the paralegal can appear at a routine motion hearing to "just handle the scheduling issue." What is the correct answer?

  1. Yes, if the attorney signs a written authorization for the appearance.
  2. No, unless the judge grants leave on the record at the hearing.
  3. No, because a nonlawyer may not represent a client in court. Correct answer.
  4. Yes, because scheduling matters are ministerial rather than legal.

Explanation

Appearing before a tribunal on behalf of another person is the practice of law and is limited to licensed lawyers; neither an attorney's authorization nor courtroom courtesy converts it into a permissible paralegal task. Scheduling matters can be handled by the lawyer or through administrative channels.

Question 7Ethics and Professional Responsibility

A client meets with the attorney about a pending lawsuit, and the attorney's paralegal takes notes. Which statement is correct regarding attorney-client privilege?

  1. Privilege is waived because a third party heard the conversation.
  2. Privilege is preserved only for the attorney's statements, not the client's.
  3. Privilege applies only if the client agrees to the paralegal's presence in writing.
  4. Privilege is preserved because the paralegal acts as the lawyer's agent. Correct answer.

Explanation

Confidential communications made in the presence of a lawyer's agent who assists in the representation remain privileged; paralegals, secretaries, and similar staff fall within the privilege's protection. No special client consent or writing is required.

Question 8Ethics and Professional Responsibility

Which of the following is an example of giving legal information rather than legal advice?

  1. Telling a client which custody arrangement a court will likely approve.
  2. Advising a client to sign a settlement before trial.
  3. Explaining how the client should answer an interrogatory.
  4. Telling a client the filing fee and the courthouse address. Correct answer.

Explanation

Legal information is factual and procedural, such as deadlines, fees, filing locations, and court rules, while legal advice applies the law to the client's situation in a way that guides the client's choices. Fee and location details convey facts rather than a recommended course of action.

Question 9Ethics and Professional Responsibility

In a pending personal injury case, the paralegal's attorney represents the plaintiff. The defendant, who has his own lawyer, calls the paralegal directly to discuss the accident. What should the paralegal do?

  1. Discuss the case only if the defendant says his lawyer does not mind.
  2. Listen to the defendant's account and take detailed notes for use at trial.
  3. Discuss the case as long as the paralegal does not mention the lawsuit.
  4. End the conversation and tell the defendant to speak with his own lawyer. Correct answer.

Explanation

Model Rule 4.2 bars a lawyer, and staff acting for the lawyer, from communicating about the subject of the representation with a person the lawyer knows to be represented by counsel without that counsel's consent. The paralegal should terminate the contact and direct the defendant to his own attorney.

Question 10Ethics and Professional Responsibility

The attorney asks the paralegal to call the judge's chambers to explain why the firm needs a continuance. What is the proper response?

  1. Make the call, since the rules do not bind nonlawyer staff.
  2. Decline, because contacting the judge without the other side is improper. Correct answer.
  3. Make the call only if the opposing party cannot be reached in time.
  4. Make the call but refuse to identify which party the firm represents.

Explanation

A lawyer may not communicate ex parte with a judge about a pending matter, and staff may not do indirectly what the lawyer cannot do directly. Requests for a continuance must be made through proper channels, with notice to opposing counsel and, where required, on the record.

Question 11Ethics and Professional Responsibility

A paralegal spends two hours photocopying and Bates-stamping documents in a document-production matter. How should this time be billed to the client?

  1. As a clerical cost, not as paralegal professional time. Correct answer.
  2. At one-half the paralegal's rate as a compromise.
  3. At the paralegal's full hourly rate, because a paralegal did the work.
  4. At the attorney's rate, because the paralegal was supervised by the attorney.

Explanation

Courts distinguish clerical or secretarial tasks, which are part of a firm's overhead, from substantive paralegal work that may be billed at market rates. Copying and Bates-stamping are clerical in nature and generally are not billed or recovered as paralegal time.

Question 12Ethics and Professional Responsibility

A firm offers its paralegal a bonus equal to five percent of the attorney fees generated on every case the paralegal works on. Which statement is correct?

  1. The arrangement is proper if the bonus is capped at a reasonable amount.
  2. It violates the rule barring fee sharing with nonlawyers. Correct answer.
  3. The arrangement is proper if the client consents in writing.
  4. The arrangement is proper because the paralegal did the work.

Explanation

Model Rule 5.4(a) prohibits a lawyer from sharing legal fees with a nonlawyer, and tying a nonlawyer's pay to a percentage of the fees from particular matters falls within that prohibition. A salary or a bonus keyed to overall firm profitability is permissible; a percentage of fees from specific cases is not.

Question 13Ethics and Professional Responsibility

An attorney hands a paralegal a bankruptcy matter and says, "You've never done one, but figure it out." What is the paralegal's best course of action?

  1. Say the assignment exceeds current competence and ask for training. Correct answer.
  2. Accept it but have the client sign a waiver of errors and omissions.
  3. Refuse all bankruptcy work permanently and return the file unopened.
  4. Accept it and learn the subject from whatever internet sources are available.

Explanation

Competence requires the knowledge, skill, and preparation reasonably necessary for the task, so a paralegal who lacks it should say so and obtain training or closer supervision rather than experiment on the client's matter. A client waiver cannot excuse incompetent work.

Question 14Ethics and Professional Responsibility

A client calls the firm three times asking for an update on her case. The attorney is in trial. What should the paralegal do?

  1. Say nothing until the attorney decides what to tell the client.
  2. Explain how the case is likely to be decided to reassure the client.
  3. Give the known facts and say when the attorney will call back. Correct answer.
  4. Tell the client the attorney will call and discourage further calls.

Explanation

Model Rule 1.4 requires that clients be kept reasonably informed and that reasonable requests for information be answered promptly; a paralegal may relay accurate factual status updates. Forecasting the outcome would be legal advice the paralegal may not give.

Question 15Ethics and Professional Responsibility

A paralegal learns that another paralegal at the firm has been quietly altering dates on discovery documents. What should the first paralegal do?

  1. Report the conduct to the local bar disciplinary counsel immediately.
  2. Report the conduct to the supervising attorney. Correct answer.
  3. Confront the other paralegal privately and drop the matter if she promises to stop.
  4. Keep silent, since reporting rules apply only to licensed attorneys.

Explanation

A nonlawyer's channel for suspected misconduct inside the firm is the supervising lawyer, who must then take remedial action and, where Rule 8.3 requires, report a violation that raises a substantial question as to a lawyer's honesty or fitness. A paralegal has no authority to investigate the matter or to agree that the firm will keep it quiet.

Question 16Ethics and Professional Responsibility

A paralegal is handling a routine scheduling matter with a pro se opposing party. Which approach complies with the rules?

  1. Let the party believe the paralegal is an attorney if that speeds things up.
  2. Give the party a legal opinion about the strength of his case.
  3. Make clear that the paralegal is not a lawyer and does not represent him. Correct answer.
  4. Tell the unrepresented party which documents he must file to win.

Explanation

Under Model Rule 4.3, when dealing with an unrepresented person a lawyer, and staff acting for the lawyer, must not state or imply that the lawyer is disinterested and must correct any misunderstanding about the role. The paralegal also must not give the person legal advice.

Question 17Ethics and Professional Responsibility

A client with an unpaid bill asks for her file after terminating the firm. What should the firm do?

  1. Surrender the file; a lawyer may not hold it for unpaid fees. Correct answer.
  2. Keep the file until the fee dispute has been resolved through arbitration.
  3. Return copies only after the client signs a new retainer agreement.
  4. Keep the entire file until the outstanding balance is paid.

Explanation

Model Rule 1.16(d) requires a lawyer, upon termination, to take steps to protect the client's interests, including surrendering papers and property to which the client is entitled. A fee dispute is pursued through separate collection efforts and does not justify holding the client's file.

Question 18Ethics and Professional Responsibility

Before a hearing, the attorney tells the paralegal to remove a page from a deposition transcript that hurts their client's position and give the altered transcript to opposing counsel. What should the paralegal do?

  1. Refuse, because altering evidence misleads the tribunal. Correct answer.
  2. Remove the page as directed, since the attorney takes responsibility.
  3. Remove the page but tell opposing counsel verbally about it.
  4. Remove the page only if the deposition was not under oath.

Explanation

Model Rule 3.3 prohibits a lawyer from offering evidence the lawyer knows to be false and requires correcting false statements of material fact made to a tribunal; staff may not help accomplish what the lawyer cannot do. Altering a transcript is also falsification of evidence.

Question 19Ethics and Professional Responsibility

A client asks the firm's paralegal, who is also a notary public, to explain the legal effect of an affidavit before notarizing it. What should the paralegal do?

  1. Notarize only, and refer legal questions to the attorney. Correct answer.
  2. Refuse to notarize because a paralegal may never serve as a notary.
  3. Notarize the document and note on it that advice was given.
  4. Explain the affidavit and then notarize it as a courtesy.

Explanation

A notary's function is limited to verifying identity and administering the oath or acknowledgment; explaining legal consequences is the practice of law. Combining the two roles does not expand what the notary may say or do.

Question 20Ethics and Professional Responsibility

A paralegal drafts a page for the firm's website. Which content is permissible under the rules on lawyer advertising?

  1. A statement that the firm's "legal team of experts guarantees results."
  2. A testimonial from a client without any disclaimer about typical results.
  3. A description of practice areas and the paralegals' nonlawyer status. Correct answer.
  4. A claim that the firm is "the best in the state" with no supporting data.

Explanation

Advertising must be truthful and not misleading; guarantees of results, unverifiable superiority claims, and unqualified client testimonials are classic examples of misleading content. Accurately identifying staff as paralegals informs the public and avoids implying that nonlawyers are attorneys.

Question 21Ethics and Professional Responsibility

Which statement best distinguishes the attorney-client privilege from the ethical duty of confidentiality?

  1. Privilege is an ethical duty, while confidentiality is a rule of evidence.
  2. Both apply only to statements made during litigation.
  3. Privilege governs testimony; confidentiality is the broader ethical duty. Correct answer.
  4. Both end when the representation ends.

Explanation

The privilege protects confidential client communications from compelled disclosure in legal proceedings, while the ethical duty of confidentiality covers a wider range of information and forbids disclosure except as the Rules permit. Confidentiality can reach information that was never part of a privileged communication.

Question 22Ethics and Professional Responsibility

During a free intake call, a prospective client tells a paralegal detailed, damaging facts about a car accident, then decides not to hire the firm. The firm is later asked to represent the other driver. What is the firm's position?

  1. Nothing said in intake is protected until a retainer is signed.
  2. The statements are protected and may disqualify the firm. Correct answer.
  3. The firm may take the case because no attorney-client relationship formed.
  4. The firm may take the case because the call was free of charge.

Explanation

Model Rule 1.18 protects information learned from a prospective client during a consultation even when no representation results, and disqualification can follow where the information is significantly harmful. Protection does not depend on a signed retainer or the payment of a fee.

Question 23Ethics and Professional Responsibility

A paralegal wants to paste a client's confidential medical records into a free public AI chatbot to summarize them. Which statement is correct?

  1. This is fine if the summary is only used internally at the firm.
  2. This is fine because the records belong to the client, not the firm.
  3. This is fine if the paralegal deletes the chat history afterward.
  4. This risks disclosure and requires firm-approved, secure tools. Correct answer.

Explanation

Model Rule 1.6(c) requires reasonable efforts to prevent unintended disclosure of client information, and the competence commentary expects lawyers to understand the risks of the technology they use. Entering confidential records into a public tool that may retain or train on the data is a disclosure risk that must be vetted in advance.

Question 24Ethics and Professional Responsibility

A former client sues the firm for malpractice, alleging the paralegal gave bad advice. What may the paralegal disclose?

  1. Information needed to defend against the client's claim. Correct answer.
  2. Nothing, because confidentiality is absolute.
  3. Only information the attorney authorizes in writing.
  4. Only documents the client already has in her possession.

Explanation

Model Rule 1.6(b)(5) permits a lawyer to reveal information to the extent reasonably necessary to establish a claim or defense in a controversy with the client, and staff acting for the lawyer share that latitude. The exception is limited to what the defense actually requires.

Question 25Ethics and Professional Responsibility

A paralegal who worked on a products-liability defense at Firm A joins Firm B, which represents the plaintiff in the same case. Which statement is correct?

  1. Firm B may continue only if the former client consents in writing.
  2. Firm B must withdraw because the conflict is imputed automatically.
  3. Firm B may continue if the paralegal is screened and reveals nothing. Correct answer.
  4. Firm B may continue only if the paralegal is assigned no client files at all.

Explanation

Nonlawyer conflicts are not imputed to an entire firm the way a lawyer's conflicts are; the commentary to Model Rule 1.10 provides that the firm must screen the nonlawyer from the matter and ensure she discloses no protected client information. The firm must also instruct her not to reveal confidential information.

Question 26Ethics and Professional Responsibility

A paralegal is working on a client's personal injury case. In which situation may the paralegal properly disclose information about the client's medical treatment without the client's consent?

  1. The client's adult daughter calls the office and asks how the recovery is going.
  2. A friend who works as a nurse asks what injuries the client suffered.
  3. A partner at the firm who is not assigned to the matter asks for details.
  4. A court order requires production of the treatment records. Correct answer.

Explanation

Model Rule 1.6 generally bars revealing information relating to the representation, but permits disclosure when required by law or court order, or when necessary for the representation itself. Curiosity, family relationship, or firm membership alone does not create an exception, so information should be shared only with those who need it to do the work.

Question 27Ethics and Professional Responsibility

A paralegal is assigned to defend a company in a contract dispute and learns that her husband is the plaintiff's chief financial officer. What should the paralegal do first?

  1. Wait until the discovery phase to see whether the relationship becomes a problem.
  2. Report the relationship to the supervising attorney so the firm can assess it and screen her. Correct answer.
  3. Ask her husband to resign his position with the plaintiff company.
  4. Keep working on the matter but avoid discussing the case at home with her husband.

Explanation

A personal interest that could affect the representation creates a conflict that must be evaluated and, where possible, cured by screening the nonlawyer from the matter. The decision belongs to the lawyers responsible for the file, and it must be made before any confidences are shared or work is compromised.

Question 28Ethics and Professional Responsibility

A new client gives the firm a $3,000 advance fee payment to be applied against future hourly work. How should the paralegal handle the payment?

  1. Deposit it in the client trust account and withdraw funds only as work is billed. Correct answer.
  2. Deposit it into the firm's general operating account and record it as income when received.
  3. Deposit it into the firm's payroll account to cover the paralegal's salary.
  4. Hold it in the firm's general operating account until enough hours have been billed.

Explanation

Unearned client funds must be held in a trust account and may be withdrawn only as fees are actually earned and billed. Placing advance fees in an operating account risks commingling client money with firm money, which the rules prohibit.

Question 29Ethics and Professional Responsibility

A client asks the paralegal whether the firm will reduce its hourly rate if the client pays the entire fee up front. What is the paralegal's proper response?

  1. Explain that only a lawyer can discuss fees and pass the request along. Correct answer.
  2. Explain that the firm gives an automatic discount whenever a client prepays the full fee.
  3. Agree to a ten percent discount on the spot in order to keep the client happy with the firm.
  4. State that the hourly rate is set by the court and therefore cannot be changed in this case.

Explanation

Negotiating or setting the terms of a fee agreement is the practice of law, so a nonlawyer may not agree to or quote a reduced rate. The paralegal should tell the client that a lawyer will respond and relay the request promptly.

Question 30Ethics and Professional Responsibility

While reviewing documents the opposing party produced, a paralegal finds a letter that appears to be protected by the attorney-client privilege and was plainly sent by mistake. What should the paralegal do?

  1. Leave it in the production set for the client to review at the next meeting.
  2. Stop reading it and notify the supervising attorney. Correct answer.
  3. Read it carefully and use it at the next deposition because production waived the privilege.
  4. Return it to opposing counsel without telling the attorney or noting it in the file.

Explanation

When a lawyer or paralegal receives a document that appears to be inadvertently disclosed privileged material, the recipient must stop reviewing it and notify the sender; the receiving party may not use it until the claim is resolved. The supervising attorney should decide how to proceed and document the steps taken.

Question 31Ethics and Professional Responsibility

A paralegal calls an unrepresented witness who is also a potential defendant to schedule an interview. The witness asks, 'Do I need a lawyer for this?' What is the best response?

  1. Say that anything he tells her will remain confidential between the two of them.
  2. Explain that she cannot give legal advice and that he may want to consult his own lawyer. Correct answer.
  3. Change the subject and reschedule the call so she does not have to answer the question.
  4. Tell him the case against him is weak and that he probably does not need to hire his own counsel.

Explanation

When dealing with an unrepresented person, a lawyer or paralegal may not give legal advice other than to secure counsel and must not imply that the firm is protecting that person's interests. Clarifying the limits of the role lets the witness make an informed choice about speaking.

Question 32Ethics and Professional Responsibility

A paralegal wants to review a personal injury plaintiff's social media posts to gather evidence about the claimed injuries. Which approach complies with the rules?

  1. View only content that is publicly available and use no deception. Correct answer.
  2. Ask the plaintiff's coworker to log in to the plaintiff's account for her.
  3. Send a message pretending to be an old classmate from high school.
  4. Create a false profile and send the plaintiff a friend request to see private posts.

Explanation

Investigative work may use publicly available information, but obtaining evidence through false identities, pretexts, or unauthorized access involves dishonesty and may also violate computer-access laws. Any request to connect with a represented party would also raise a separate no-contact problem.

Question 33Ethics and Professional Responsibility

The attorney tells the paralegal to record 1.5 hours of research on a file that the paralegal never performed so the file 'looks busy.' What should the paralegal do?

  1. Refuse to record time that was not worked and explain why to the attorney. Correct answer.
  2. Enter the time as instructed because the attorney is responsible for the file.
  3. Enter the time and keep a private note documenting the discrepancy.
  4. Enter half of the time as a reasonable compromise with the attorney.

Explanation

Recording time that was not worked is a misrepresentation to the client and, if billed, a form of dishonesty prohibited by the rules. A paralegal may not participate in the scheme even at a lawyer's direction, and a private note or partial entry does not cure the falsity.

Question 34Ethics and Professional Responsibility

The adult son of a client calls the firm and demands an update on his mother's case, saying he holds her power of attorney. How should the paralegal respond?

  1. Read the relevant parts of the file to him over the telephone.
  2. Confirm the scope of his authority with the attorney before disclosing anything. Correct answer.
  3. Give him a general summary, since family members are entitled to case information.
  4. Tell him the case is going badly and that the firm may have to withdraw.

Explanation

Confidential information may be shared with a third party only when the client has authorized it, and a caller's assertion of authority must be verified before anything is disclosed. The attorney decides whether the power of attorney covers the matter and how much may be shared.

Question 35Ethics and Professional Responsibility

After a trial ends, a paralegal recognizes one of the jurors at a coffee shop and wants to ask how the jury reached its verdict. What is the proper course?

  1. Ask the juror informally about the deliberations, since the trial has already ended.
  2. Record a conversation with the juror on her phone without saying so.
  3. Ask the juror only whether the final vote on liability was unanimous.
  4. Avoid questioning the juror and report the encounter to the attorney. Correct answer.

Explanation

Rules on trial conduct restrict contact with jurors about the case, including questioning them about deliberations, and surreptitious recording adds a separate deception problem. The safest course is to refrain and let the attorney determine whether any lawful inquiry is possible.

Question 36Ethics and Professional Responsibility

A client who is pleased with the outcome of her case offers the paralegal a $5,000 cash gift. What should the paralegal do?

  1. Decline the gift and report the offer to the supervising attorney. Correct answer.
  2. Accept it and split the money with the attorney who tried the case.
  3. Accept it, because the representation has ended and the client is grateful.
  4. Accept it and record it on the firm's books as miscellaneous income.

Explanation

The rules discourage lawyers from soliciting or accepting substantial gifts from clients, and a paralegal is bound by the same professional standards through the supervising lawyer. Declining and reporting the offer lets the firm address the situation openly.

Question 37Ethics and Professional Responsibility

A paralegal wants to work on a client's confidential documents from home over the weekend. Which step best protects client information?

  1. Use the firm's approved secure remote-access system. Correct answer.
  2. Email the documents to a personal webmail account so they are easy to open at home.
  3. Store them on a free public file-sharing site that anyone with the link can browse.
  4. Use the client's own email account with a password the client shares with the firm.

Explanation

The duty of confidentiality includes an obligation to make reasonable efforts to prevent inadvertent or unauthorized disclosure, which extends to how electronically stored information is handled. Firm-approved systems are designed with the access controls and security that unapproved personal tools lack.

Question 38Ethics and Professional Responsibility

A paralegal worked on a products-liability case at Firm A. She now works at Firm B, which represents the opposing party in that same case. Which statement is correct?

  1. She may work on the matter freely as long as she does not discuss it with anyone at the new firm.
  2. No precautions are needed, because conflict rules apply only to lawyers and not to nonlawyers.
  3. Screening is required, and she may not use or reveal the former client's confidences. Correct answer.
  4. The firm is automatically disqualified because a nonlawyer's conflict is imputed to every lawyer there.

Explanation

Imputed disqualification under the conflict rules applies to lawyers, not to nonlawyer employees, so a firm is not automatically disqualified when it hires a paralegal from the other side. The paralegal's own duties of confidentiality and loyalty continue, however, which is why screening and a strict prohibition on using or revealing what she learned are required.

Question 39Ethics and Professional Responsibility

A former client sues the firm for malpractice, alleging that the paralegal missed a filing deadline. The firm's defense counsel asks the paralegal what she knows about the client's matter. What may the paralegal do?

  1. Refuse to discuss anything, because the duty of confidentiality is absolute and never ends.
  2. Speak only after the client signs a new engagement letter with the firm.
  3. Discuss the client's confidences only to the extent needed to defend the claim. Correct answer.
  4. Disclose whatever she knows about the client, since the client sued the firm first.

Explanation

Confidentiality survives the end of the representation, but the rules permit a lawyer to reveal information reasonably necessary to defend against a claim of wrongful conduct, including malpractice. The exception is limited, so the paralegal should share only what the defense actually requires.

Question 40Ethics and Professional Responsibility

A firm settles a client's case for $50,000. The client's health insurer asserts a $12,000 lien on the proceeds, and the client disputes the lien. What should the firm do with the disputed $12,000?

  1. Disburse the entire $12,000 to the client along with the rest of the settlement.
  2. Keep the disputed portion in trust until the dispute is resolved. Correct answer.
  3. Apply the disputed amount to the firm's unpaid fee, then refund the rest.
  4. Pay the insurer in full to avoid any delay in closing the file.

Explanation

When a third party claims an interest in trust funds and the client disputes that interest, the disputed portion must remain in trust until the claim is resolved. Paying either claimant before resolution exposes the firm to liability for the other's share.

Question 41Substantive Law

A homeowner mails a signed offer to a contractor: "I will pay you $5,000 to remodel my kitchen if you accept by Friday." The contractor mails a written acceptance on Thursday. Under common law, when is the contract formed?

  1. When the contractor mails the acceptance. Correct answer.
  2. When both parties sign a formal contract.
  3. When the contractor starts the remodel.
  4. When the homeowner receives the acceptance.

Explanation

Under the common-law mailbox rule, an acceptance by an authorized medium is effective when dispatched, unless the offer specifies otherwise or is an option contract. A contract therefore forms on mailing, not on receipt.

Question 42Substantive Law

A neighbor promises to pay a college student $100 to mow the lawn. The student mows the lawn. What consideration supports the neighbor's promise?

  1. The student's act of mowing the lawn. Correct answer.
  2. The neighbor's promise to pay.
  3. The student's past friendship with the neighbor.
  4. The neighbor's ownership of the lawn.

Explanation

Consideration is a bargained-for exchange in which each party gives a legal detriment or incurs a legal benefit. The student's mowing is the performance requested by the neighbor and is the consideration for the neighbor's promise.

Question 43Substantive Law

Which contract must be in writing to be enforceable under the Statute of Frauds?

  1. A contract to paint a house for $2,000.
  2. A contract for the sale of a used bicycle for $200.
  3. A contract to walk a neighbor's dog for one month.
  4. A contract for the sale of land. Correct answer.

Explanation

The Statute of Frauds requires a writing for certain categories, including contracts for the sale of land, suretyship promises, contracts that cannot be performed within one year, and UCC goods sales of $500 or more.

Question 44Substantive Law

A clinic signs a contract under which a company will install and service a specialized MRI machine for $200,000. A dispute arises. Which body of law primarily governs?

  1. Federal administrative regulations, because a clinic is involved.
  2. Criminal law, because medical equipment is regulated.
  3. UCC Article 2, because goods predominate. Correct answer.
  4. Common law, because the contract includes services.

Explanation

When a contract mixes goods and services, courts apply the predominant purpose test. If the sale of goods is the main thrust and services are incidental, UCC Article 2 governs.

Question 45Substantive Law

In a negligence action, a defendant's duty to the plaintiff is generally measured by what standard?

  1. The plaintiff's reasonable expectations.
  2. The reasonable person standard. Correct answer.
  3. The highest possible professional standard.
  4. The defendant's subjective best efforts.

Explanation

Negligence compares the defendant's conduct to that of a reasonably prudent person under similar circumstances. The defendant's subjective best efforts or the plaintiff's expectations do not define the duty.

Question 46Substantive Law

A company stores large quantities of explosives in a residential neighborhood. A blast injures a passerby despite the company's reasonable care. Under what theory is the company most likely liable?

  1. Negligence, because the company owed a duty of care.
  2. Strict liability for abnormally dangerous activity. Correct answer.
  3. Battery, because the blast touched the passerby.
  4. Trespass, because the blast entered the neighbor's land.

Explanation

Strict liability applies to abnormally dangerous activities that create a foreseeable risk of serious harm and cannot be made safe with reasonable care. The injured passerby need not prove negligence.

Question 47Substantive Law

A newspaper publishes a false statement about a local mayor's handling of public funds. The mayor sues for defamation. What must the mayor prove about the newspaper's state of mind?

  1. The newspaper acted negligently.
  2. Knowledge of falsity or reckless disregard. Correct answer.
  3. The newspaper intended to cause emotional distress.
  4. The newspaper failed to apologize after publication.

Explanation

A public official suing for defamation about official conduct must prove actual malice. Actual malice means knowledge that the statement was false or reckless disregard for its truth or falsity.

Question 48Substantive Law

A person deliberately throws a cup of water on a stranger in a restaurant, soaking the stranger's shirt. Which tort has most likely occurred?

  1. Battery. Correct answer.
  2. Defamation.
  3. Trespass to land.
  4. Conversion.

Explanation

Battery is intentional harmful or offensive contact with another person. Throwing water on a stranger is an intentional offensive contact, even if no physical injury results.

Question 49Substantive Law

A deed conveys Blackacre "to Alex and his heirs." What estate does Alex receive at common law?

  1. Life estate.
  2. Estate for years.
  3. Fee tail.
  4. Fee simple absolute. Correct answer.

Explanation

At common law, the words "and his heirs" are words of limitation that create a fee simple absolute. Alex owns the estate indefinitely, subject to no future interest.

Question 50Substantive Law

A tenant's apartment becomes uninhabitable because the landlord shuts off heat in winter, despite the lease requiring heat. The tenant moves out and stops paying rent. What doctrine best supports the tenant?

  1. Waste.
  2. Constructive eviction. Correct answer.
  3. Eminent domain.
  4. Adverse possession.

Explanation

Constructive eviction occurs when a landlord's conduct substantially interferes with the tenant's use and enjoyment of the premises, making them unfit. The tenant may vacate within a reasonable time and treat the lease as ended.