MPRE Law Firms 2 — Questions and Answers
Question 1: A law firm partner learns that an associate billed 10 hours for a task that took only 2 hours. Under the Model Rules, the partner must:
- Ignore it since the client has not yet complained
- Take reasonable remedial action to prevent or mitigate consequences (Correct answer)
- Wait until the client raises a dispute before acting
- Simply reduce the bill without informing the client of the error
Correct answer: Take reasonable remedial action to prevent or mitigate consequences
Rule 5.1 requires partners to take reasonable remedial action when they know of a subordinate's ethical violation.
Question 2: An attorney works at a firm that requires all associates to use a billing software that automatically rounds up time to the nearest hour. This practice:
- Is permissible if disclosed in the engagement letter (Correct answer)
- Violates the rule against charging unreasonable fees regardless of disclosure
- Is an accepted industry standard and fully ethical
- Is only improper if the client is charged more than $500 extra per month
Correct answer: Is permissible if disclosed in the engagement letter
Billing practices that inflate time are permissible when clients are fully informed and consent in the engagement agreement.
Question 3: A non-lawyer office manager at a law firm instructs associates on how to handle client files without attorney review. Under the Model Rules, this arrangement:
- Is permissible if the manager has paralegal training
- Violates the prohibition on non-lawyers directing professional judgment of lawyers (Correct answer)
- Is allowed if a supervising partner is available in the office
- Is ethical provided the associates follow applicable court rules
Correct answer: Violates the prohibition on non-lawyers directing professional judgment of lawyers
Rule 5.4 prohibits non-lawyers from directing or controlling the professional judgment of attorneys.
Question 4: A law firm's written policy states that associates will be disciplined for failing to meet a minimum annual billable hour requirement of 2,400 hours. This policy:
- Is per se unethical under the Model Rules
- Is permissible only if pro bono hours count toward the requirement
- Does not itself violate the Model Rules but can pressure associates toward unethical billing (Correct answer)
- Requires state bar approval before implementation
Correct answer: Does not itself violate the Model Rules but can pressure associates toward unethical billing
High billing quotas are not inherently unethical but create pressure that can lead to overbilling or other misconduct.
Question 5: Attorney X is a junior partner at a firm. She discovers that the firm's senior partner has been converting client funds. X reports it to the firm's ethics committee, but they take no action. X should:
- Do nothing further since she already reported internally
- Report the misconduct to the appropriate disciplinary authority (Correct answer)
- Resign from the firm and keep the information confidential
- Contact the affected clients directly without reporting to authorities
Correct answer: Report the misconduct to the appropriate disciplinary authority
When internal reporting fails to address misconduct involving client harm, Rule 8.3 may require reporting to the disciplinary authority.
Question 6: A law firm advertises that it is 'the most successful personal injury firm in the state.' This statement is:
- Permissible as puffery that no reasonable person would take literally
- Prohibited as a false or misleading communication if it cannot be substantiated (Correct answer)
- Allowed if accompanied by a disclaimer
- Permissible only in print ads but not on television
Correct answer: Prohibited as a false or misleading communication if it cannot be substantiated
Rule 7.1 prohibits false or misleading communications, and superlative claims that cannot be verified are misleading.
Question 7: Two attorneys practice together and share office space and a receptionist but maintain completely separate client files and finances. They should be identified to clients as:
- A law firm, since they share resources
- Separate solo practitioners to avoid implying they are partners (Correct answer)
- A professional association requiring a formal agreement
- A partnership by default under state law
Correct answer: Separate solo practitioners to avoid implying they are partners
Rule 7.5 requires that lawyers not imply partnership or association where none exists, so sharing space alone does not make them a firm.
A law firm partner learns that an associate billed 10 hours for a task that took only 2 hours.
Under the Model Rules, the partner must: