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MCLE Test and Answer Sheet


Test No. 42: Golden Rules (July/August 1996 LA Lawyer)

Instructions for Obtaining MCLE Credits
The Los Angeles County Bar Association certifies that this activity has been approved for Minimum Continuing Legal Education credit by the State Bar of California in the amount of 1 hour.

1.Study the CLE article in this issue.


2.Answer the test questions by marking the appropriate boxes. Each question has only one answer. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced.

3.Mail the answer sheet and the $15 testing fee ($20 for non-LACBA members) to:
Los Angeles Lawyer
MCLE Test
P.O. Box 55020
Los Angeles, CA 90055 
 
Make checks payable to Los Angeles Lawyer.

4.You can also fill in the test form and submit it directly to LACBA by clicking "Submit." To submit your test answers online you will need to pay by credit card. After submitting your answers you will be presented with a screen requesting payment information. This information will be submitted in a secure mode which will allow you to safely transmit your credit card number over the Internet. If you prefer not to pay by credit card, please print this answer sheet and submit your responses by regular mail.

5.Within six weeks, Los Angeles Lawyer will return your test with the correct answers, a rationale for the correct answers, and a certificate verifying the CLE credit you earned through this self-assessment activity.

6.For future reference, please retain the CLE test materials returned to you. 
Test Sheet 
Mark your answers to the test by clicking next to your choice.  All questions must be answered.  Each question has only one answer. This test is worth 1 hour of credit.*

HYPOTHETICAL #1  
H and W are contemplating a divorce. W meets with Lawyer and discusses the possibility of Lawyer's retention in the anticipated divorce from H. Ultimately W decides not to employ Lawyer. H subsequently inquires if Lawyer will represent him in the anticipated divorce litigation with W.

1.  Lawyer may represent H as long as Lawyer did not receive confidential client information from W.
 True.
 False.  
  
  

2.  Assume Lawyer also is a principal in an asset-valuation company. Lawyer may recommend and enter into a contract with H to have the company value H's business in connection with the divorce proceedings as long as Lawyer discloses in writing his ownership interest in the company.
 True.
 False.
   
  

3.  Lawyer hires Accountant Wayne, an independent expert, to appraise H's business. Based on Wayne's appraisal, H agrees to buy out W's interest for $500,000, which he does. Later Wayne is found negligent for failing to include certain liabilities in his appraisal, with the result that H overpaid W in the amount of $175,000. Wayne's negligence is attributable to Lawyer under principles of respondeat superior. 
 True.
False. 

HYPOTHETICAL #2
Lawyer is a partner who works at Law Firm A, which represents Corp in many of its product-liability cases in Northern California. Lawyer moves to Southern California and joins Law Firm B.

4.  Assume Lawyer was a lead attorney for all of Corp's product-liability litigation involving a product known as "widget." Law Firm B represents Jones who is suing Corp for personal injuries allegedly arising out of a defective widget. If Lawyer is effectively screened from the Jones litigation, Law Firm B may continue to represent Jones against Corp.
 True.
 False.  
  
  

5.  Assume the same facts as Question 4 except that the Jones litigation involves a claim that Corp wrongfully terminated Jones for alleged sexual harassment. Law Firm B may continue to represent Jones against Corp.
 True.
 False.  
  
  

6.  Assume the same facts as Question 4, except that Lawyer joins Law Firm B as "of counsel." Because Lawyer is neither an owner (partner) nor employee (associate), the knowledge Lawyer acquired while representing Corp is not imputed to the other lawyers at Law Firm B for purposes of disqualification.
 True.
False. 

HYPOTHETICAL #3
Client is sued for personal-injury damages in a high-profile case that engenders substantial, sustained media interest. Client is represented by Able Attorney. Client is a highly placed elected official.

7.  Able holds a news conference in which he lambastes plaintiff's counsel for acting as a willing accomplice in a partisan-inspired witch hunt of Client. Because Able sincerely believes that his statements are true and accurate, and because the matter is a civil rather than a criminal proceeding, Able is free from discipline for making the statements—even if the statements are false.
 True.
 False.  
  
  

8.  Able has a conversation with Client over Able's car phone. The call is intercepted by Terry Tabloid who records it. The tape may be subpoenaed and accepted as evidence because the conversation between Able and Client was conducted over a nonsecure means of communication, there was no expectation of privacy, and thus the attorney-client privilege does not apply.
 True.
 False.  
  
  

9.  During settlement negotiations Able provides a false insurance endorsement that reasonably leads the plaintiff to conclude that Client's actions, which are the subject of the lawsuit, are uninsured. Based on that belief, the claim is settled for substantially less than its expected value. Thereafter, the plaintiff discovers the misrepresentation and sues Able for fraud. Able's demurrer to the complaint on the grounds that his conduct was absolutely privileged will be denied. 
 True.
 False.  
  
  

10.  Assume the plaintiff is a lawyer representing herself pro per. During the course of the litigation, she successfully moves to compel Client to provide further answers to interrogatories. The court also awards the plaintiff costs totaling $600 as attorneys' fees. The fee award is invalid under Trope v. Katz. 
 True.
False. 

HYPOTHETHICAL #4
Sara Smith has brought a lawsuit against Investment Company and Harry Blowheart, an Investment Company employee. Smith alleges that Investment Company and Blowheart encouraged her to invest large sums of money in speculative securities based on representations that the investment was completely safe and without any risk. Investment Company hires Law Firm to defend it in Smith's lawsuit.

11.  Assume that Investment Company asks Law Firm to represent Blowheart in the lawsuit as well, which the firm agrees to do. Under the current California Rules of Professional Conduct, the lawyers representing Investment Company and Blowheart in the lawsuit are required to obtain the two parties' informed written consent if their interests in the lawsuit potentially conflic.
 True.
 False.  
  
  

12.  Law Firm may condition the representation of Blowheart on its being able to withdraw from representing Blowheart and continue representing Investment Company if the two parties' positions in the lawsuit become adverse
 True.
 False.  
  
  

13.  The Smith lawsuit is one of several separate lawsuits by investors against Investment Company involving the same false representations arising from the same circumstances. Jenny Jones, a client of Law Firm, is a plaintiff in one of those lawsuits. Whether Law Firm is precluded from representing Investment Company in the Jones lawsuit depends on whether the firm has obtained confidential information by virtue of representing Jones.
 True.
 False.  
  
  

14.  Assume the facts in Question 13. Law Firm represents Investment Company in the Smith lawsuit but not in the Jones lawsuit. The Smith lawsuit is consolidated with the Jones lawsuit for trial. Does Law Firm have a conflict of interest?
 Yes.
 No.  
  
  

15.  Assume one of Law Firm's lawyers representing Investment Company in the Smith lawsuit has a financial interest in the subject matter of the case. Under the current California Rules of Professional Conduct, the lawyer cannot continue to represent Investment Company in the lawsuit without obtaining Investment Company's informed written consent. 
 True.
 False.  
  
  

16.  While Law Firm's representation of Investment Company is pending, a lawyer in the firm who is unaware of the representation is approached by a prospective client to bring a suit against Investment Company. After learning of the firm's representation of the company, the lawyer declines the engagement. Under the holding in Flatt v. Superior Court, Law Firm would breach its duties to Investment Company if it refers the prospective client to another attorney or advises the prospective client about the statute of limitations. 
 True.
False. 

HYPOTHETICAL #5 
A and B want to form a partnership to acquire a shopping center. Prior to forming the partnership, A and B ask Lawyer to represent them as a partnership in negotiating the purchase.
17.  May Lawyer represent the A-and-B partnership prior to its formation?
 Yes.
 No.
   
  

18.  Suppose A and B ask Lawyer to negotiate their respective interests in the partnership. May Lawyer accept this representation without obtaining their informed written consent?
 Yes.
No. 

HYPOTHETICAL #6
Personal-injury Lawyer seeks to increase her business by sending solicitation letters to members of the public offering her services in the event of future injuries.

19.  Under the present state of the law, the State Bar can constitutionally prohibit Lawyer from sending the letters until 30 days after a potential client is injured as a result of an accident or disaster. 
 True.
 False.  
  
  

20.  Under the present state of the law, the State Bar can constitutionally prohibit Lawyer from sending the letters altogether based on anecdotal evidence that the letters would invade the privacy of the recipients. 
 True.
False. 
 

Address and Billing 
After submitting your answers you will be asked to enter your name, address, and payment information on the next screen. Once you have submitted the current form, you will be switched to a secure mode which will allow you to safely transmit your credit card number over the Internet.

If you do not wish to complete this transaction over the Internet you should print this page and send it to the address listed in Step 3 of the instructions at the top of this page.

   
Before hitting the "Submit" button please verify that all questions have been answered.

*The Los Angeles County Bar Association has been approved as a continuing legal education provider of Minimum Continuing Legal Education credit by The State Bar of California. This self-assessment activity will qualify for Minimum Continuing Legal Education credit by The State Bar of California in the amount of one hour.

 


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