Liability and Ethics Flashcards

What type of liability can an Arizona notary face if they negligently perform a notarial act that results in financial harm to a third party?

Answer: Civil liability for damages caused by the negligent notarization, potentially up to and beyond the $5,000 surety bond amount

An Arizona notary can face civil liability for negligent notarization that causes financial harm. The $5,000 surety bond provides initial coverage, but the notary can be personally liable for damages exceeding the bond amount.

An employer directs an employee-notary to perform a notarization they know is improper. The notary complies. Who bears legal liability?

Answer: The notary bears personal liability — following employer instructions is not a defense for violating notary law; the employer may also share liability

An Arizona notary is personally liable for improper notarizations they perform, regardless of employer instructions. 'Following orders' is not a defense under Arizona notary law. The employer may also face liability for directing the improper act.

What ethical obligation does an Arizona notary have regarding the confidentiality of information they learn while performing notarial acts?

Answer: Notaries have an implicit professional duty to maintain the confidentiality of personal information about signers, though the journal may be required to be produced under court order

While Arizona does not have a statutory notary-client privilege, notaries have an implicit professional obligation to protect the personal information of signers. Journal records are not public records but may be produced under court order or legal process.

An Arizona notary is asked by a signer to explain the legal effect of the document they are about to sign. What should the notary do?

Answer: Decline to provide legal advice and suggest the signer consult with an attorney if they have questions about the document's legal effect

Explaining the legal effect of a document constitutes legal advice, which requires a license to practice law in Arizona. An Arizona notary who is not also an attorney must decline to provide legal advice and should direct the signer to an attorney.

What is the ethical responsibility of an Arizona notary when they suspect a transaction they are being asked to notarize involves elder financial abuse?

Answer: Decline to notarize if the circumstances suggest the elderly signer is being exploited or is not signing freely and voluntarily, and consider reporting concerns to Adult Protective Services

An Arizona notary who observes signs of elder financial abuse should decline to perform the notarization if the signer does not appear to be signing freely and voluntarily, and may report concerns to Arizona's Adult Protective Services.

An Arizona notary is offered a substantial gift by a client in exchange for notarizing a document 'without asking too many questions.' What is the ethical and legal significance of this situation?

Answer: The offer suggests the client wants the notary to circumvent proper procedures; accepting the gift and proceeding improperly could constitute bribery and notarial misconduct

A gift offered in exchange for performing a notarization 'without asking too many questions' is essentially a bribe — it is inducement to circumvent proper notarial procedures. Accepting it and complying could constitute bribery and notarial misconduct under Arizona law.