32. Essay 2 (1/3 of Exam Grade) – Answer according to both the American Bar Association Model Rules of Professional Conduct and California authorities Pete is a partner at Law Firm, a firm with multiple offices across the United States.  One of Law Firm’s clients is Running Desk Corp., a company that manufactures office desks with a built-in treadmill for people who desire a more active and healthy lifestyle.  Law Firm reviews Running Desk Corp.’s purchase orders and agreements with component manufacturers.  Pete purchased one of these treadmill desks for his office.  One day, while running on his treadmill, Pete fell when he tried to take a closer look at his computer monitor on the desk component.  As a result of the fall, Pete sustained severe orthopedic injuries. Hank, a partner in Law Firm’s east coast office, has been asked to represent Running Desk Corp. in a lawsuit filed by attorney Abe.  Abe has filed a class action on behalf of all people who sustained orthopedic injuries after purchasing Running Desk Corp.’s treadmill desk.  Hank files an answer to the complaint before running the request through Law Firm’s conflicts manager.  Class action notices were sent to all potential class members, but Pete has not responded whether he will join the class yet.  Abe also represents Cam as a plaintiff in a case arising out of an automobile accident, where Cam sustained severe injuries which required amputation of both legs above the knee, and both arms right below the elbow.  The defendant in Cam’s case made an offer to settle in the amount of $100,000.  Since the class action against Running Desk Corp. will be expensive to litigate, Cam accepts the offer to settle.  Abe then calls Cam to tell him that his case resolved and to sign the settlement agreement. Please discuss whether Pete, Hank, and/or Abe would be subject to discipline. 

16.  Attorney Able, a personal injury attorney with no experience in commercial matters, makes an oral agreement with Carl Client to prepare a complicated contract for a fee of $500 per hour.  The customary fee for similar work by local lawyers experienced in commercial matters is $350.  Attorney Able spends four hours on the contract, but sends an invoice for $2,500. Which of the following subjects Attorney Able to discipline?  I. He failed to reduce the fee arrangement to writing. II. His fee is greater than the customary local hourly fee for more experienced lawyers. III. His invoice exceeded the fee agreed upon. IV. As a lawyer inexperienced in commercial matters, he should have agreed to a fee of less than $350 per hour.

Question Nos. 19 and 20 are based on the following facts: Helen has been practicing law for two years.  Helen represents Pat in her first medical malpractice case against Dr. Euphoria.  She spends almost no time preparing the case, and her research and trial work fall far below the standard of care for lawyers in her area.  The jury finds against Pat, i.e., defense verdict in favor of Dr. Euphoria.  Pat subsequently files a complaint against Helen with the State Bar, and also sues Helen for legal malpractice. 19. In the disciplinary hearing against Helen, the State Bar will likely:

Question Nos. 19 and 20 are based on the following facts: Helen has been practicing law for two years.  Helen represents Pat in her first medical malpractice case against Dr. Euphoria.  She spends almost no time preparing the case, and her research and trial work fall far below the standard of care for lawyers in her area.  The jury finds against Pat, i.e., defense verdict in favor of Dr. Euphoria.  Pat subsequently files a complaint against Helen with the State Bar, and also sues Helen for legal malpractice. 20. In Pat’s legal malpractice suit against Helen, Helen refuses to answer questions about confidential communications with Pat during the suit against Dr. Euphoria.  Helen’s refusal is:  

30.  Wealthy Aunt asks her nephew, Abe (an attorney), to prepare her will.  Wealthy Aunt tells Abe exactly how she wants her estate distributed, and Abe does his best to draft the will accordingly.  One of the distributions involves Wealthy Aunt’s large stake in an oil company.  Wealthy Aunt wants Abe to get the stock.  May Abe prepare the will?

22.  You represent Ona, who is negotiating to buy a pizza franchise from Alpha Pizza.  Ona’s banker sees you at a restaurant one day and tells you he hopes Ona gets the pizza franchise, because her other franchises have suffered financial setbacks.  That same afternoon, you talk with your best friend Ollie.  Ollie tells you he plans to invest in one of Ona’s franchises.  Can you disclose the information that Ona’s banker told you to your friend?

Question Nos. 19 and 20 are based on the following facts: Helen has been practicing law for two years.  Helen represents Pat in her first medical malpractice case against Dr. Euphoria.  She spends almost no time preparing the case, and her research and trial work fall far below the standard of care for lawyers in her area.  The jury finds against Pat, i.e., defense verdict in favor of Dr. Euphoria.  Pat subsequently files a complaint against Helen with the State Bar, and also sues Helen for legal malpractice. 20. In Pat’s legal malpractice suit against Helen, Helen refuses to answer questions about confidential communications with Pat during the suit against Dr. Euphoria.  Helen’s refusal is:  

13.  A man walked into a lawyer’s office and explained that he is a salesman, that one of his sales associates has just been arrested, and that he would like the lawyer to defend the sales associate.  The lawyer suspects that this salesman is a drug dealer (i.e., methamphetamine, heroine, cocaine, and other illegal drugs), but does not have any concrete proof.  The salesman offered to leave a $10,000 retainer in a shoebox of $100 bills.  The lawyer told the salesman that he would think about his request and would let him know later that day.  When the salesman left the office, the lawyer telephoned his friend and mentor, a retired judge.  The lawyer told the judge the entire story, including the salesman’s name, and asked the judge whether it would be ethical to defend the sales associate and accept the salesman’s cash.  Is the lawyer subject to discipline for telling the judge the whole story?

PART I: MULTIPLE CHOICE QUESTIONS (1/3 of Final Exam Grade) (60 minutes – 30 Questions)   Select the best answer out of the available choices. Answer according to the American Bar Association Model Rules of Professional Conduct.1. Alice Attorney is the general counsel of Drug Co.  The government launches an investigative probe into the Food & Drug Administration’s approval of Drug Co.’s latest diabetes drug, Insulix, because there are suspicions that Drug Co. improperly paid a Food & Drug Administration official to “fast-track” the approval process for Insulix.  Alice Attorney meets with the Insulix Research and Development team and asks them questions about the Insulix Food & Drug Administration submission process.  The Food & Drug Administration issues deposition subpoenas to the Insulix Research and Development team.  At the depositions of the Insulix Research and Development team, the lawyer for the Food & Drug Administration asks each of the members what they told Alice Attorney.  Do the members of the Insulix Research and Development team have to reveal what they told Alice Attorney?

21.  Client needs to file for bankruptcy.  Client is a single mother, unable to pay her mortgage, car payment, or credit card bills.  She received a notice from the power company threatening to turn off her electricity unless the overdue bills are paid.  Attorney agrees to help Client by filing the bankruptcy petition pro bono. Client asks Attorney to give her a small amount of money to help buy food and medicine for her child, but Attorney offers instead to lend her some money to buy what she needs.  In exchange, Attorney asks Client out on a date.  Is Attorney subject to discipline?