Ethics Flashcards
A solicitor is acting on a conveyancing matter and discloses in the client care letter that he has paid a referral fee for the work. The client complains that this is a ‘prohibited referral fee’ and, as such, the solicitor is not permitted to make such a payment.
Which of the following statements best describes whether the client is correct?
he client is not correct as this is not a prohibited referral fee and it was disclosed to the client at the outset.
A ‘prohibited referral fee’ is the payment or receipt of referral fees in claims for damages following personal injury or death. The SRA Code of Conduct for Solicitors, RELs and RFLs also prohibits referral fees (and all payments relating to referrals or introductions) in respect of clients who are the subject of criminal proceedings. The referral fee in this conveyancing matter was not prohibited and the client was properly notified
A person is selling his house to a first-time buyer who has not used a solicitor before. The seller has instructed his solicitor to act on the sale and has suggested that the solicitor also act for the buyer to keep things simple. The seller’s solicitor declines to act for the buyer.
Which of the following statements best describes whether the solicitor was correct to decline to act for the buyer?
The solicitor has correctly identified at the outset that there is a significant risk of conflict between the seller and the buyer and has thus declined to act for the buyer. There is a significant risk of conflict when acting for both a buyer and seller, and the risk is even greater here because the buyer is not a sophisticated user of legal services.
solicitor has been engaged to act in a discrimination matter for a client. The client does not speak English, and a colleague at the solicitor’s firm who speaks the client’s language attended the solicitor’s initial meeting with the client to provide translation services. The solicitor intends to send the client the firm’s client care information, including information as to the client’s options for making a complaint.
Which of the following best describes what the solicitor is required to do?
The solicitor must provide the client with all required client care information, and it is common practice to provide this in the form of a client care letter. The solicitor should discuss options for translating the information into the client’s language.
The SRA does not require a formal client care letter, but a solicitor must provide all required client care information to the client. Furthermore, a solicitor must give clients information in a way they can understand. This choice best describes what the solicitor must do
A former client has contacted a solicitor to inform them that they have a relative who needs legal advice on a property purchase. They want to refer their relative to the solicitor’s firm, but they ask that the solicitor share 10% of their fees for this matter with them.
Do the rules of professional conduct allow the solicitor to enter into this arrangement with the client?
Fee sharing arrangements with a third party must be in writing, and the client must be informed of any fee sharing arrangement that is relevant to their matter.
a solicitor can share their professional fees with non-lawyer third parties
the arrangement MUST be in writing. Also, the client (here, the relative) must be informed of any fee sharing agreement that is relevant to their matter, but written consent is not required
Two prospective buyers are attending a residential property auction, and both have approached the same solicitor to act for them. The first prospective buyer is a large company with its own in-house legal team, and the second prospective buyer is a local farmer who has never instructed a solicitor before.
Which of the following statements best describes whether the solicitor should accept instructions from both prospective buyers?
Acting for two buyers competing for the same property is a conflict of interest. Even though a solicitor may act despite a conflict where clients are competing for the same objective, this exception only applies if certain conditions are met.
One such condition is that the solicitor must be satisfied that it is reasonable to act for all the clients.
One factor to consider when determining whether acting for all clients is reasonable is the relative knowledge and bargaining power of the parties. Here, one prospective buyer is a sophisticated company and the other is an individual. The ‘competing for the same objective’ exception is generally only used when the clients are sophisticated users of legal services
A solicitor asks to speak with the firm’s compliance officer for legal practice (COLP). The solicitor tells the COLP that he has accepted a police caution in respect of a shoplifting allegation even though he denies that he did anything wrong.
Must the SRA be notified of the caution imposed on the solicitor?
The SRA Code of Conduct for Solicitors, RELs and RFLs states that solicitors must notify the SRA promptly if they are subject to any criminal charge, conviction, or caution (subject to the Rehabilitation of Offenders Act 1974).
all cautions must be declared regardless of subject matter or any connection with the workplace.
