Wrong MCQ's Flashcards
A new client engages a solicitor to act for her in a matter. The solicitor promptly emails a client care letter to the client explaining how the legal fees will be calculated and the likely overall cost. The solicitor also telephones the client the same day and informs her of her right to complain about the solicitor’s services and charges, including details of how to make a complaint and how to make a complaint to the Legal Ombudsman. During the telephone call the solicitor also explains the main legal issues presented in the matter.
If the SRA considers that the solicitor did not comply with the SRA Code of Conduct for Solicitors, RELs and RFLs at the time of engagement, what is the most likely reason?
At the time of engagement, a solicitor must inform the client in writing of their right to complain, how and to whom complaints can be made, and their right to make a complaint to the Legal Ombudsman. Here the solicitor provided this information by telephone and this was not sufficient.
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?
(D) 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) is incorrect because a solicitor can share their professional fees with non-lawyer third parties
A firm is contacted by a claims management company (CMC), which offers to refer personal injury clients to the firm. As part of the agreement, the firm will be required to send the CMC a proportion of the professional fees it obtains from each referred client or the other side. This is described as a ‘marketing fee’ which will be used to cover the CMC’s costs in obtaining the client.
Does this arrangement violate the firm’s professional duties?
The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) prohibits the payment or receipt of referral fees in claims for damages following personal injury or death. An example would be a solicitor paying a claims management company for referral to the firm of a personal injury client. When it appears to the SRA that a solicitor or firm has made or received a prohibited referral fee, the payment will be treated as a prohibited referral fee unless the solicitor or firm demonstrates otherwise
Question
A solicitor has an interest in another business which is an estate agency. The solicitor is dealing with the administration of an estate for a client and intends to refer the executors to the solicitor’s estate agency to market the deceased’s property. The solicitor believes that this particular estate agency is ideally suited to handle this.
Do the rules of professional conduct allow the solicitor to refer the client to the solicitor’s estate agency?
A solicitor is permitted to refer the clients to their separate business as long as they have the client’s informed consent to do this. Informed consent means the solicitor should tell the client about their interest in the separate business. (
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?
The solicitor should decline to act due to the potential conflict because it would not be reasonable to act for both prospective buyers.
cting 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
