MPRE Practice Test 2025 – Complete Exam Prep

Question: 1 / 400

What is necessary when a lawyer makes a loan to a client?

It is permissible as long as it is documented

It must follow the rule against loans, without exceptions

When a lawyer makes a loan to a client, the ethical rules governing professional conduct generally prohibit attorneys from lending money to clients. This prohibition is based on a concern that such loans could create conflicts of interest, exploit the trust inherent in the attorney-client relationship, or undermine the lawyer's role as an objective advisor. Because of these potential issues, the rules against loans to clients are strict, and there are typically no exceptions that would allow for ethical lending in this context.

The ethical guidelines emphasize the importance of maintaining the integrity of the attorney-client relationship and protecting clients from potential exploitation. The prohibition exists to ensure that lawyers do not place themselves in a position where their financial interests might compromise their professional judgment or the interests of their clients.

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It requires a verbal agreement of consent

It is acceptable if it is a small amount

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