Other Ethical Issues Flashcards
Under CCS 8.8, what is the primary requirement for a solicitor’s publicity?
A) It must be accurate and not misleading.
B) It must be pre-approved by the SRA.
C) It must highlight the solicitor’s achievements.
D) It must include testimonials from past clients.
A) It must be accurate and not misleading.
Explanation:
CCS 8.8 requires that all publicity be truthful and not misleading.
False or misleading marketing could lead to regulatory action.
Which of the following marketing methods is prohibited under CCS 8.9?
A) Posting an online advertisement on a legal services website.
B) Sending promotional emails to existing clients.
C) Sponsoring a local community event.
D) Making unsolicited phone calls to potential clients.
D) Making unsolicited phone calls to potential clients.
Explanation:
CCS 8.9 prohibits solicitors from making unsolicited approaches to potential clients, except for current or former clients.
What must solicitors disclose when referring a client to a third party under CCS 5.1?
A) The third party’s company history and reputation.
B) A written statement from the SRA approving the referral.
C) Any financial interest in the referral.
D) The third party’s pricing structure.
C) Any financial interest in the referral.
Explanation:
CCS 5.1 requires solicitors to disclose any financial interest in referrals to ensure transparency and avoid conflicts of interest.
Under LASPO 2012, which type of referral fee is strictly prohibited?
A) Referral fees in debt recovery cases.
B) Referral fees in personal injury claims.
C) Referral fees for family law matters.
D) Referral fees for employment disputes.
B) Referral fees in personal injury claims.
Explanation:
LASPO 2012 prohibits referral fees in personal injury and death claims to prevent exploitation of claimants and unethical business practices.
How does the Bribery Act 2010 impact solicitors?
A) Solicitors must avoid receiving bribes but can make facilitation payments.
B) Solicitors and firms can be criminally liable if bribery occurs within the firm.
C) The Act only applies to large corporations, not individual solicitors.
D) Solicitors can accept gifts from clients without restriction.
B) Solicitors and firms can be criminally liable if bribery occurs within the firm.
Explanation:
The Bribery Act 2010 makes firms and solicitors liable for bribery committed on their behalf unless they can prove they had adequate prevention measures.
A solicitor advertises a fixed-fee service on their website but fails to mention that additional court fees apply. What rule is breached?
A) CCS 8.8 – Publicity must be accurate and not misleading.
B) CCS 5.1 – Referrals must be disclosed in writing.
C) CCS 1.3 – Undertakings must be fulfilled.
D) LASPO 2012 – Personal injury referral fee ban.
A) CCS 8.8 – Publicity must be accurate and not misleading.
Explanation:
Failing to disclose additional costs misleads clients, breaching CCS 8.8.
Transparency in costs is also reinforced by the SRA Transparency Rules.
A solicitor receives a £300 commission from a financial advisor for every client they refer but does not inform the clients. What rule is breached?
A) CCS 5.1 – Failure to inform clients of financial interests in referrals.
B) CCS 8.9 – Unsolicited approaches.
C) CCS 2.2 – Attempting to influence evidence.
D) LASPO 2012 – Unlawful referral fee in personal injury cases.
A) CCS 5.1 – Failure to inform clients of financial interests in referrals.
Explanation:
CCS 5.1 requires full disclosure of financial benefits from referral arrangements to ensure transparency.
A solicitor meets a potential client who was referred by a claims management company. The client was pressured into signing the contract. What should the solicitor do?
A) Proceed with the case if the client does not withdraw.
B) Report the referral to the SRA and refuse to act.
C) Accept the case and offer a discount to the client.
D) Continue representing the client but reject any future referrals from the company.
B) Report the referral to the SRA and refuse to act.
Explanation:
CCS 5.1 states that clients must not be acquired improperly.
Solicitors must not proceed with a case if the referral was unethical.
A solicitor’s firm is found to be missing its SRA number and digital badge from its website. What must the firm do to comply with the SRA Transparency Rules?
A) Inform clients that the information is available upon request.
B) Remove the website until the information is updated.
C) Display the SRA details only on invoices.
D) Immediately add the SRA number and digital badge to its website.
D) Immediately add the SRA number and digital badge to its website.
Explanation:
SRA Transparency Rules require firms to display their SRA authorisation number and digital badge in a prominent place.
A solicitor receives a gift from a potential business partner after referring clients to them. The gift is worth £500, and no disclosure is made. What should the solicitor have done?
A) Declined the gift and recorded the refusal in the firm’s compliance records.
B) Accepted the gift but only disclosed it internally.
C) Accepted the gift and informed the SRA.
D) Reported the business partner under the Bribery Act 2010.
A) Declined the gift and recorded the refusal in the firm’s compliance records.
Explanation:
Receiving gifts related to referrals can create an own-interest conflict under CCS 6.1.
Recording the refusal ensures transparency and compliance.
