Supp 6 Regulation of the Legal
Profession Exam Questions with
Complete Answers
Attorney was part of a partnership before he died. He left his nephew as his sole
heir. The partnership agreement, as written, provides that the firm should pay the
certain amounts to the nephew. Those amounts are $210,000, for Attorney's share of
the firm's assets; a $500,000 death benefit, provided for all shareholders in the
partnership; and $17,500 for fees that Attorney earned on recent cases, but had not
yet received. Under the Model Rules, which of the following represents the most that
the firm may properly pay to the decedent's nephew? - ANSWER-$727,500, for
Attorney's share of the firm's assets, his of uncollected fees, and the death benefit
The American Liberties Foundation, a tax-exempt 501(c)3 nonprofit corporation,
hired Celebrity Attorney to represent a class of defendants who want to eliminate
federal decency standards that prohibit frontal nudity and pornographic sex scenes
on broadcast television, as promulgated and enforced by the Federal
Communications Commission. Celebrity Attorney prevailed in the case, winning the
class members the right to broadcast pornography to school-age children on
broadcast television in the afternoon. The court also awarded substantial attorney
fees to the prevailing party in the case. Celebrity Attorney shares the fees with the
American Liberties Foundation, and gives 85% of the fees to the nonprofit. Which of
the following is true about this action by Celebrity Attorney? - ANSWER-The fee-
sharing arrangement with the nonprofit entity is proper.
Attorney could not find a full-time job after law school, so instead he works on a
contract basis for other firms. Attorney also signs up with a legal temp-work agency,
a company owned by nonlawyers that places lawyers in temporary assignments at
law firms that need an extra associate on a short-term basis. Law firms contact the
legal temp-work agency when they need lawyers for a special project or assignment,
and the agency sends them several resumes from which to choose the temporary
associates they want. Through this temp-work agency, Attorney receives a three-
month assignment at Big Firm conducting document review as part of litigation
discovery. The firm pays Attorney $75 per hour, and pays the temp-work agency a
placement fee of 7% on whatever Attorney earns. Big Firm, in turn, passes the
Attorney's $100/hour fees and the 7% placement fee through to its clients as an item
on the client's bill. Is this arrangeme - ANSWER-It is proper for Big Firm to pay the
placement fee to the agency, to pass the fees through to the clients, and to pay
Attorney's hourly rate out of the fees it receives from clients.
After a long, distinguished career as a solo practitioner in a major city, an elderly
attorney agrees to join a newer law firm on the condition that the firm would pay
$1000 per month after the attorney's death to his sister, who is 74 years old, until her
death. The attorney's sister is not a lawyer. The firm agrees to this arrangement, in
addition to making the attorney a partner with a 15% share in the firm. Is this
, arrangement proper? - ANSWER-Yes, because it is the payment of money over a
reasonable period of time after the lawyer's death to a specified person.
Attorney agrees to buy the successful law firm of a fellow attorney who recently
succumbed to
terminal cancer. The sale includes the office building, the library and furnishings, and
the good will of the firm, and conforms to the provisions of Rule 1.7. The purchasing
attorney pays $100,000, the agreed-upon purchase price, to the executor of the
deceased attorney's estate, but the executor is not a lawyer. The funds for the
purchase came from the contingent fees in a recent personal injury case won by the
purchasing attorney. Was this transaction improper? - ANSWER-No, because a
lawyer purchasing the firm of a deceased lawyer may pay the executor the agreed-
upon purchase price.
Three law partners have decided to incorporate their firm instead of continuing as a
partnership, as their malpractice insurer has offered them a lower rate on their
premiums if their incorporate and thereby reduce some of their joint liability. They
also want to make a clearer track for associates to become shareholders after
reaching certain performance benchmarks. The articles of incorporation provide that
when a shareholder dies, a fiduciary representative of the estate may hold stock in
the corporation for a reasonable time during administration of the estate before
transferring it to the heirs. Which of the following may the partners properly do as
they incorporate? - ANSWER-They may provide, as stated, that when a shareholder
dies, a fiduciary representative of the estate may hold stock in the corporation for a
reasonable time during administration of the estate before cashing out the shares
and transferring the funds to the heirs.
Holy Trinity Church retains Attorney to challenge a new zoning regulation that would
prohibit the
church from constructing a new, expanded sanctuary on its property, attached to the
existing church. The church cannot afford to pay Attorney, and it is seeking only a
declaratory judgment (that the regulation is invalid) rather than money damages.
Attorney agrees to take the case and then split any court-awarded legal fees with the
church if they prevail. They win a favorable judgment; the court declares the
regulation unconstitutional and awards legal fees, which Attorney shares with the
church.
Is the fee sharing proper? - ANSWER-Yes, because a lawyer may share court-
awarded legal fees with a nonprofit organization that retains
the lawyer in a matter
Attorney is a licensed lawyer in a New England state, but has an office and
represents clients exclusively in a southern state. Attorney confines her practice to
immigration law, representing foreign- born clients in immigration hearings. A
relevant federal statute permits nonlawyers to appear as representatives for
immigrants when they appear before the immigration agency. Many of Attorney's
clients have applied for a spousal visa after marrying an American citizen, and some
clients had a Notary Public from their home country or an un-ordained lay minister
from their home church conduct their wedding ceremony. In addition, some were
previously married and divorced in their home country, where such transactions are
informal and have no official documentation. There is often some question about
Profession Exam Questions with
Complete Answers
Attorney was part of a partnership before he died. He left his nephew as his sole
heir. The partnership agreement, as written, provides that the firm should pay the
certain amounts to the nephew. Those amounts are $210,000, for Attorney's share of
the firm's assets; a $500,000 death benefit, provided for all shareholders in the
partnership; and $17,500 for fees that Attorney earned on recent cases, but had not
yet received. Under the Model Rules, which of the following represents the most that
the firm may properly pay to the decedent's nephew? - ANSWER-$727,500, for
Attorney's share of the firm's assets, his of uncollected fees, and the death benefit
The American Liberties Foundation, a tax-exempt 501(c)3 nonprofit corporation,
hired Celebrity Attorney to represent a class of defendants who want to eliminate
federal decency standards that prohibit frontal nudity and pornographic sex scenes
on broadcast television, as promulgated and enforced by the Federal
Communications Commission. Celebrity Attorney prevailed in the case, winning the
class members the right to broadcast pornography to school-age children on
broadcast television in the afternoon. The court also awarded substantial attorney
fees to the prevailing party in the case. Celebrity Attorney shares the fees with the
American Liberties Foundation, and gives 85% of the fees to the nonprofit. Which of
the following is true about this action by Celebrity Attorney? - ANSWER-The fee-
sharing arrangement with the nonprofit entity is proper.
Attorney could not find a full-time job after law school, so instead he works on a
contract basis for other firms. Attorney also signs up with a legal temp-work agency,
a company owned by nonlawyers that places lawyers in temporary assignments at
law firms that need an extra associate on a short-term basis. Law firms contact the
legal temp-work agency when they need lawyers for a special project or assignment,
and the agency sends them several resumes from which to choose the temporary
associates they want. Through this temp-work agency, Attorney receives a three-
month assignment at Big Firm conducting document review as part of litigation
discovery. The firm pays Attorney $75 per hour, and pays the temp-work agency a
placement fee of 7% on whatever Attorney earns. Big Firm, in turn, passes the
Attorney's $100/hour fees and the 7% placement fee through to its clients as an item
on the client's bill. Is this arrangeme - ANSWER-It is proper for Big Firm to pay the
placement fee to the agency, to pass the fees through to the clients, and to pay
Attorney's hourly rate out of the fees it receives from clients.
After a long, distinguished career as a solo practitioner in a major city, an elderly
attorney agrees to join a newer law firm on the condition that the firm would pay
$1000 per month after the attorney's death to his sister, who is 74 years old, until her
death. The attorney's sister is not a lawyer. The firm agrees to this arrangement, in
addition to making the attorney a partner with a 15% share in the firm. Is this
, arrangement proper? - ANSWER-Yes, because it is the payment of money over a
reasonable period of time after the lawyer's death to a specified person.
Attorney agrees to buy the successful law firm of a fellow attorney who recently
succumbed to
terminal cancer. The sale includes the office building, the library and furnishings, and
the good will of the firm, and conforms to the provisions of Rule 1.7. The purchasing
attorney pays $100,000, the agreed-upon purchase price, to the executor of the
deceased attorney's estate, but the executor is not a lawyer. The funds for the
purchase came from the contingent fees in a recent personal injury case won by the
purchasing attorney. Was this transaction improper? - ANSWER-No, because a
lawyer purchasing the firm of a deceased lawyer may pay the executor the agreed-
upon purchase price.
Three law partners have decided to incorporate their firm instead of continuing as a
partnership, as their malpractice insurer has offered them a lower rate on their
premiums if their incorporate and thereby reduce some of their joint liability. They
also want to make a clearer track for associates to become shareholders after
reaching certain performance benchmarks. The articles of incorporation provide that
when a shareholder dies, a fiduciary representative of the estate may hold stock in
the corporation for a reasonable time during administration of the estate before
transferring it to the heirs. Which of the following may the partners properly do as
they incorporate? - ANSWER-They may provide, as stated, that when a shareholder
dies, a fiduciary representative of the estate may hold stock in the corporation for a
reasonable time during administration of the estate before cashing out the shares
and transferring the funds to the heirs.
Holy Trinity Church retains Attorney to challenge a new zoning regulation that would
prohibit the
church from constructing a new, expanded sanctuary on its property, attached to the
existing church. The church cannot afford to pay Attorney, and it is seeking only a
declaratory judgment (that the regulation is invalid) rather than money damages.
Attorney agrees to take the case and then split any court-awarded legal fees with the
church if they prevail. They win a favorable judgment; the court declares the
regulation unconstitutional and awards legal fees, which Attorney shares with the
church.
Is the fee sharing proper? - ANSWER-Yes, because a lawyer may share court-
awarded legal fees with a nonprofit organization that retains
the lawyer in a matter
Attorney is a licensed lawyer in a New England state, but has an office and
represents clients exclusively in a southern state. Attorney confines her practice to
immigration law, representing foreign- born clients in immigration hearings. A
relevant federal statute permits nonlawyers to appear as representatives for
immigrants when they appear before the immigration agency. Many of Attorney's
clients have applied for a spousal visa after marrying an American citizen, and some
clients had a Notary Public from their home country or an un-ordained lay minister
from their home church conduct their wedding ceremony. In addition, some were
previously married and divorced in their home country, where such transactions are
informal and have no official documentation. There is often some question about
