Chapter 2 - Ethics

Question 1

Distinguish between ethics and compliance.

Answer 1

The first distinction is that ethical choices are supposed to be freely chosen in a way that compliance (or legally compelled) choices are not.

The second distinction is that just as ethical actions should not be chosen out of fear of the consequences, they should also not be chosen solely for the hope of additional gain or reward.

Question 2

Moral Perception

Answer 2

Moral perception enables us to perceive the

morally relevant details and facts in a particular situation.

Question 3

Moral Imagination

Answer 3

Moral imagination allows us to speculate as to how the possible consequences of our decisions will
affect other people around us, both in the short term and the long term

Question 4

The six ethical principles which follow from the application of the Professional Pledge
are as follows:

Answer 4

1. Integrity
2. Objectivity
3. Fairness
4. Competence
5. Diligence
6. Confidentiality

Question 5

The three purposes of ethics are:

Answer 5

• To govern behavior which is not appropriately regulated by the law.
• To supplement legal condemnation with moral disapproval.
• To encourage behavior which goes beyond what the law requires.

Question 6

Vocation

Answer 6

According to Lawrence Blum, the concept of a vocation includes a specific place and a designated purpose within society. Vocation carries with it certain values, standards, and ideals. “Vocation implies that the ideals
that it embodies are ones that speak specifically to the individual in question. There is a personal identification with the vocation, with its values and ideals and a sense of personal engagement that helps to sustain the individual in her carrying out the activities of the vocation.

Question 7

Ethical behavior can be partially self-interested as long as it is not exclusively so?

Answer 7

True

Question 8

Giving information to a client concerning tax laws is considered the unauthorized practice of law?

Answer 8

False.
Giving information concerning tax laws is not the unauthorized practice of law as long as the advice is generally informational or on a settled area of law that is common knowledge in the estate planning field.

Question 9

Our ethical obligations replace our legal obligations?

Answer 9

False.

Ethical obligations supplement and reinforce our legal obligations.