A lawyer with a three-attorney law firm was in the market for a used car for his son. One of the firm's clients was a car dealership, and the lawyer and his son stopped by the client's premises to look at used cars. While shopping at the dealership, the owner and president of the dealership recognized the lawyer. After discussing the son's needs, the owner offered to sell a used Toyota to the lawyer and to give him the standard ten-percent discount that all sales personnel are authorized to give to friends and family. Can the lawyer accept the offer without doing anything further?

Question

Quizplus · Accepted Answer

Yes, because the Model Rule that prohibits entering business transactions with clients does not apply to standard transactions the client markets to others. Generally, a lawyer may not enter into a business transaction with a client unless the transaction is fair and reasonable to the client, the terms are fully disclosed in writing, the client is advised to seek advice of independent counsel, and the client gives informed consent in writing. Model Rule 1.8(a). The comment to Model Rule 1.8, however, states that the rule does not apply to "standard commercial transactions . . . for products or services that the client generally markets to others . . . . In such transactions, the lawyer has no advantage in dealing with the client." Answer A is the best choice because the standard ten-percent discount for family and friends is generally marketed to others by all sales personnel at the dealership. Answer B is not the best choice because a business transaction can create a conflict under the Model Rules. Answer C is not the best choice because no such requirement exists under the Model Rules. Answer D is not the best choice because the comment states Rule 1.8(a) does not apply to standard commercial transactions.

A Lawyer with a Three-Attorney Law Firm Was in the Market