CP Ethics and Professional Responsibility 2 — Questions and Answers
Question 1: What is the unauthorized practice of law (UPL) and why must paralegals be aware of it?
- Practicing without passing the bar, not applicable to paralegals
- Performing legal tasks only licensed attorneys may perform, which paralegals must avoid (Correct answer)
- Filing documents without court approval
- Representing clients in small claims court
Correct answer: Performing legal tasks only licensed attorneys may perform, which paralegals must avoid
UPL occurs when a non-attorney gives legal advice, represents clients in court, or sets legal fees.
UPL activities include giving legal advice, representing clients in most proceedings, establishing attorney-client relationships, setting fees, and accepting cases. NALA requires paralegals to work under attorney supervision and identify themselves as paralegals. Violation can result in criminal penalties, civil liability, and sanctions.
Question 2: What is the attorney-client privilege and how does it extend to paralegals?
- Protects only attorney communications, not paralegal
- Protects confidential communications and extends to paralegals working under attorney supervision (Correct answer)
- Applies only during trial
- Protects all communications in an office
Correct answer: Protects confidential communications and extends to paralegals working under attorney supervision
Attorney-client privilege protects confidential communications for legal advice and extends to paralegals as agents of the attorney.
Attorney-client privilege protects confidential communications made for obtaining legal advice. It extends to paralegals and legal staff as agents of the attorney. The paralegal must maintain confidentiality; any breach could waive the privilege. The privilege belongs to the client and only the client can waive it.
Question 3: According to NALA guidelines, what must a paralegal do upon discovering a conflict of interest?
- Resolve it independently
- Immediately disclose it to the supervising attorney (Correct answer)
- Withdraw without telling anyone
- Continue working but document it
Correct answer: Immediately disclose it to the supervising attorney
A paralegal must immediately report potential conflicts to the supervising attorney for appropriate action.
When a paralegal discovers a potential conflict through new intake, representation changes, or prior work, they must immediately disclose it. The attorney determines whether it can be waived, whether an ethical wall is needed, or whether the firm must decline. Many firms maintain conflict databases that paralegals help check.
Question 4: What is an ethical wall in a law firm?
- A physical barrier between practice areas
- Screening procedures isolating a person from a case to prevent conflicts or improper disclosure (Correct answer)
- A policy preventing communication with opposing counsel
- A firewall protecting client data
Correct answer: Screening procedures isolating a person from a case to prevent conflicts or improper disclosure
An ethical wall consists of screening procedures preventing a conflicted individual from accessing a case.
An ethical wall involves: physically separating the screened individual, prohibiting case discussions, restricting file access, providing written notice to firm members, and monitoring compliance. They are particularly important when paralegals move between firms with adverse clients.
Question 5: What obligation does a paralegal have regarding client trust accounts?
- Free access to manage trust accounts
- Understanding that client funds must be kept separate and never commingled with firm funds (Correct answer)
- No involvement permitted
- May authorize disbursements independently
Correct answer: Understanding that client funds must be kept separate and never commingled with firm funds
Client funds must always be kept separate from the firm's operating funds; commingling is a serious violation.
Client trust accounts (IOLTA) must be separate from firm operating accounts. Commingling can result in disbarment. Client funds must be promptly deposited, detailed records maintained, and funds disbursed only for intended purposes. The attorney bears ultimate responsibility while paralegals may handle bookkeeping under supervision.
Question 6: What is the paralegal's duty regarding competence under the NALA Code of Ethics?
- Only perform tasks learned in school
- Maintain competence through continued education and professional development (Correct answer)
- No independent duty of competence
- Measured only by passing the CP exam
Correct answer: Maintain competence through continued education and professional development
NALA requires paralegals to maintain high competence through continuing education and staying current.
NALA requires staying current with law and technology changes, pursuing continuing education (50 hours CLE over 5 years for CP maintenance), knowing competence limits, and performing tasks with diligence and thoroughness.
CP Ethics and Professional Responsibility 2
What is the unauthorized practice of law (UPL) and why must paralegals be aware of it?