Professional Responsibility (Solicitor) Question Pack - Questions and Answers
Professional Responsibility
1. Tariq is retained to complete a commercial real estate transaction involving the purchase of a retail plaza. He agrees to act for both the purchaser and the private lender providing 80% of the purchase price. The transaction closes on time, but six months later, the lender complains that the property’s condition was misrepresented and that Tariq failed to disclose environmental issues flagged in a pre-closing report. During the Law Society’s investigation, Tariq argues that the lender was sophisticated and had access to its own due diligence tools. He refuses to provide the report, claiming solicitor-client privilege.
What is the Law Society most likely to do?
A) Decline to proceed further with the matter, since the lender’s commercial sophistication and access to investigative resources reasonably diminished the lawyer’s disclosure obligations.
B) Refer the matter to Investigation Services if the privilege claim appears obstructive and may be impeding the Society’s ability to assess professional misconduct.
C) Accept that solicitor-client privilege, once properly asserted, overrides any regulatory interest and prevents further examination of the disputed material.
D) Close the file without disciplinary action, concluding that the lender’s failure to identify deficiencies through independent investigation broke the causal chain of reliance.
Correct Answer: B
Explanation: Where a complaint is made involving potential conflicts of interest or nondisclosure, the Law Society may pursue an investigation even if the lawyer claims privilege. A refusal to cooperate may itself raise disciplinary issues, particularly if the conduct impedes the Law Society’s public interest mandate to investigate competence and integrity.
2. A lawyer in an estate planning practice forgets to file their CPD annual report, believing that recent parental leave will exempt them from the filing requirement. They continue advising clients and executing wills. Two months later, they are notified of an administrative suspension. The lawyer immediately stops seeing clients but does not inform existing ones about the suspension, assuming the delay is minor and will soon be resolved.
What is the most likely regulatory consequence?
A) No discipline will occur if the leave was medically justified.
B) The lawyer may be subject to a hearing to determine whether a suspension is warranted.
C) The lawyer is automatically suspended and must meet disclosure and trust-related duties.
D) The suspension is ineffective if the client did not suffer any harm.
Correct Answer: C
Explanation: Administrative suspensions take effect automatically when the lawyer fails to meet regulatory obligations such as CPD reporting. Practising while suspended, even unknowingly, triggers serious consequences. The lawyer must immediately disclose the suspension to clients and ensure proper handling of all ongoing files.
3. Grace acts for a vendor in a high-value share sale of a closely held corporation. The purchaser’s counsel requests confirmation that no litigation is pending against the company. Grace checks the public record but does not contact the vendor’s CFO, who had warned of a threatened lawsuit weeks earlier. After closing, the buyer discovers the claim and files a complaint against Grace with the Law Society.
How is the complaint most likely to be handled?
A) The Law Society is likely to dismiss the complaint because Grace owed no duty to opposing counsel and acted solely in the interest of her vendor client.
B) The Law Society is likely to investigate whether Grace failed to meet the required standard of diligence and competence in verifying her representations.
C) The Law Society is likely to take no action if the litigation had not yet been commenced at the time Grace made the requested confirmation.
D) The Law Society is likely to initiate a formal hearing due to the financial harm suffered by the purchaser following Grace’s misrepresentation.
Correct Answer: B
Explanation: The Law Society has jurisdiction to investigate lawyers for any conduct that may suggest a failure to meet ethical or professional standards, including misrepresentations made to opposing counsel. Failing to make reasonable inquiries about known risks may result in scrutiny of the lawyer’s diligence and competence.
4. Nathan manages a busy real estate practice and uses a power of attorney template for elderly clients selling their properties while abroad. After a transaction closes, the true owner contacts the firm, saying he never authorized the sale. Nathan’s assistant admits to notarizing a forged signature as a “favour” to another client. The Law Society opens a full investigation.
What is the Law Society most likely to focus on?
A) Whether the assistant committed criminal fraud.
B) Whether the assistant had prior discipline history.
C) Whether the client should have verified the registration.
D) Whether Nathan failed to supervise non-licensee staff adequately.
Correct Answer: D
Explanation: Lawyers are required to supervise all non-licensee staff and ensure that any delegated duties are performed within the bounds of legal and ethical standards. Inadequate oversight, particularly involving document execution, exposes the lawyer to discipline for failing to protect the public from fraud.
5. Karima is contacted by a Law Society intake officer following a complaint by a business law client who alleges she missed a key indemnity clause in a shareholders’ agreement. Karima refuses to respond, believing the complaint is without merit and unrelated to her core retainer. Three months later, she receives a formal notice requiring her to participate in a practice review.
What professional rule has Karima most clearly breached?
A) She failed to cooperate with a regulatory investigation.
B) She refused to respond to a client file request.
C) She failed to report opposing counsel’s misconduct.
D) She violated advertising rules by overselling her expertise.
Correct Answer: A
Explanation: Lawyers must cooperate fully with the Law Society in any complaint process, regardless of whether the underlying issue seems minor or unjustified. Failing to respond promptly and completely may itself result in disciplinary consequences, separate from the original complaint.
6. Melissa is retained to act in a residential purchase for a family that recently immigrated to Canada. The client, who speaks English as a second language, becomes visibly confused during the signing meeting and asks several questions about the fixed-rate mortgage and penalties. Melissa, in a rush to meet back-to-back closings, responds briefly but fails to clarify the potential early payout costs. Weeks later, the client incurs an unexpected $13,000 prepayment charge and complains about the lack of clear advice.
What professionalism obligation did Melissa most clearly fail to meet?
A) She failed to adequately review financial documents prepared by third parties, including the mortgage statement and lender instructions, before final execution.
B) She failed to comply with statutory disclosure duties specific to residential transactions involving vulnerable clients under provincial consumer protection law.
C) She failed to provide clear, accessible, and culturally responsive legal advice suited to the client’s language skills and level of understanding.
D) She failed to report the family’s financial vulnerability to the lender as part of her obligations under client-lender communication guidelines.
Correct Answer: C
Explanation: Lawyers must ensure their communication is effective and adapted to each client's needs, particularly when language or cultural factors may affect understanding. When a client shows signs of confusion, the lawyer must pause, explain clearly, and confirm comprehension before proceeding, especially in high-stakes transactions.
7. During an estate planning meeting, a client tells Luke that she wishes to disinherit one of her adult children due to longstanding conflict. The child, who has developmental disabilities, was previously financially dependent on the parent. Luke makes no inquiries about alternative support mechanisms, and the will is signed. After the client dies, the child challenges the will and alleges discrimination.
Which principle of professionalism is most engaged by Luke’s conduct?
A) Luke failed to honour solicitor-client privilege.
B) Luke failed to apply cultural competence in assessing the client’s instructions.
C) Luke breached a court-ordered support agreement.
D) Luke failed to explore the impact of disinheritance in a vulnerable context.
Correct Answer: D
Explanation: Lawyers must recognize how their client’s instructions may intersect with the rights of others, especially in contexts involving disability or dependency. Failing to advise on the risks or consider more equitable arrangements may fall short of the lawyer’s professional responsibilities to provide thoughtful, inclusive service.
8. Ethan is a business lawyer retained by a group of shareholders to incorporate a new real estate development company. He regularly corresponds with only one shareholder and finalizes the corporate documents based solely on those instructions. At a closing dinner, one shareholder complains that he was never informed about unequal voting rights embedded in the articles. Ethan defends himself, saying the shareholder never asked to be copied on the documents.
What is the key professionalism issue in Ethan’s conduct?
A) He failed to properly draft the voting structure in accordance with the expected proportional rights among shareholders, resulting in an imbalance that could expose him to claims of negligence.
B) He failed to comply with his obligation to circulate corporate financial disclosures under the Corporations Act and should have ensured all parties were fully informed prior to closing.
C) He failed to uphold his duty to treat all clients in a joint retainer with fairness, transparency, and equal access to material information by selectively communicating with only one instructing party.
D) He violated procedural fairness under trust accounting rules by issuing invoices without providing equal billing information or engagement documentation to all shareholders involved in the matter.
Correct Answer: C
Explanation: Where a lawyer acts for multiple clients jointly, they must ensure that all parties are kept informed and adequately understand the structure and implications of the legal instruments. Selectively communicating with only one party risks misunderstandings and may undermine the integrity of the retainer.
9. Joanne is the managing partner of a mid-size real estate firm. A junior associate reports that one of the firm’s senior conveyancers frequently makes sarcastic remarks about racialized clients during intake, including “these people always need extra handholding.” Joanne says, “It’s just his sense of humour,” and does not follow up. Months later, a client files a complaint with the Law Society.
What obligation did Joanne fail to meet?
A) The obligation to prevent and address workplace discrimination and harassment.
B) The duty to avoid placing herself in a non-client conflict situation by managing staff with competing personal views.
C) The obligation to manage her own practice’s billing policy.
D) The duty to safeguard client property and information by ensuring culturally sensitive client intake procedures.
Correct Answer: A
Explanation: Lawyers in leadership positions must ensure their workplace is free from harassment or discrimination. Dismissing a report involving racial bias, even if couched as “humour,” fails to meet the duty to maintain a safe, inclusive environment for both clients and employees.
10. A lawyer prepares dual mirror wills for a couple. Months later, one spouse contacts the lawyer to prepare a new will removing the other. The lawyer drafts the new will without informing the previously joint client or recommending separate representation. The surviving spouse is later surprised and emotionally distressed.
Which professionalism rule is most clearly breached?
A) The lawyer failed to ensure the will was witnessed properly.
B) The lawyer violated the duty of loyalty and transparency arising from a prior joint retainer.
C) The lawyer engaged in marketing without disclosing conflicts.
D) The lawyer failed to report the change to the Office of the Public Guardian and Trustee.
Correct Answer: B
Explanation: Lawyers acting under a joint retainer owe duties to both clients. When circumstances change, they cannot continue to act for one without first informing the other and advising on the right to seek independent legal advice. Proceeding unilaterally compromises the fairness and integrity of the process.
11. Elliot is retained to act in a commercial lease transaction involving a landlord and a new tech start-up. The company is run by two siblings, and only one attends meetings with Elliot. That sibling gives instructions and signs the engagement letter as "Founder and CEO." Months later, the other sibling claims they were excluded from key decisions and that Elliot failed to consult them as a 50% shareholder. Elliot responds that he believed the CEO was authorized to act alone and had not been told otherwise.
What is Elliot’s most significant professional oversight?
A) He failed to obtain formal documentation confirming which corporate officer was authorized to provide binding instructions on behalf of the client.
B) He failed to ensure the lease was properly registered against title in accordance with applicable commercial conveyancing practices.
C) He failed to identify the need for a joint retainer and obtain express consent from both siblings before representing their shared business interest.
D) He failed to advise the corporate client to purchase commercial title insurance to protect against future leasehold disputes or encumbrances.
Correct Answer: A
Explanation: When acting for a corporate client, lawyers must confirm and document who has authority to give instructions on behalf of the organization. Relying on one principal without verifying authority risks misunderstandings and conflicts, especially where ownership is shared and control is disputed.
12. Naomi is acting for a vendor in the sale of a family-owned business. Her client attends all meetings with his adult son, who occasionally speaks on his father’s behalf. The son also provides Naomi with several closing documents to sign and insists that he has “always handled things for Dad.” Naomi does not meet privately with the client and does not confirm who is providing instructions. After closing, the client alleges that he did not understand the tax consequences and blames the son’s involvement.
Which of Naomi’s actions raises the greatest professional concern?
A) She permitted a third party to participate in confidential client meetings without confirming authority or documenting the client’s consent.
B) She failed to recommend that the son obtain separate legal counsel before assisting with the closing process.
C) She failed to advise the client to consult an accountant or tax lawyer before signing the final agreement of purchase and sale.
D) She accepted wire transfer instructions from the son without independently verifying them with her vendor client.
Correct Answer: A
Explanation: Lawyers must confirm who the client is and who is providing instructions. If a third party is present, the lawyer must clarify their role and determine whether the client consents to sharing information or wishes to maintain confidentiality. Failing to do so compromises the integrity of the solicitor-client relationship.
13. An estate planning lawyer meets with an elderly woman who is accompanied by her niece. The niece explains that her aunt wants to change her will, leaving everything to her. The aunt appears confused but nods in agreement. The lawyer allows the niece to remain in the room during the entire meeting and proceeds to draft the new will without ever meeting privately with the testator.
What is the key professionalism issue in this situation?
A) The lawyer failed to properly document the identity and role of the individual who later acted as a witness to the will signing.
B) The lawyer failed to clarify whether the niece was the client or merely facilitating the appointment for the elderly testator.
C) The lawyer failed to confirm that the testamentary instructions were provided freely and independently by the testator herself.
D) The lawyer failed to take steps to register the will or notify the Office of the Public Guardian regarding the change in beneficiaries.
Correct Answer: C
Explanation: Lawyers must ensure they are taking instructions directly from the client, particularly when the client is elderly or vulnerable. Allowing a beneficiary to dominate the meeting raises the risk of undue influence and may later call the will’s validity into question.
14. Daniel acts for a small corporation on a share reorganization. The president of the company, who is also a shareholder, provides instructions for the restructuring. A second shareholder later claims that she was never consulted, despite being entitled to vote on changes to share classes. Daniel assumed that corporate authorization had been handled internally and proceeded without further inquiry.
What step should Daniel have taken to avoid this issue?
A) He should have required that an independent trustee be appointed to oversee shareholder-level approvals before proceeding.
B) He should have distributed a full set of the draft transaction documents to all shareholders prior to executing the reorganization.
C) He should have ensured that the corporation filed a certified copy of the directors’ resolution with the Ministry of Finance to confirm approval.
D) He should have examined the corporation’s minute book to verify whether a valid resolution authorizing the restructuring had been passed.
Correct Answer: D
Explanation: Lawyers must confirm that the person providing instructions has proper authority. In corporate matters, this often includes reviewing the minute book, resolutions, or shareholder agreements to verify that decisions reflect authorized governance. Assumptions are not a substitute for due diligence.
15. Kim is retained by a couple to draft mirror wills. She explains the joint retainer implications and obtains written consent. After the husband’s death, the wife returns alone to Kim, asking her to prepare a new will cutting out the husband’s children from his prior marriage. Kim proceeds without informing the children or advising the wife to obtain separate legal counsel.
What professionalism rule has Kim most clearly failed to respect?
A) She acted in a conflict of interest by modifying the prior will.
B) She failed to maintain the required identification records.
C) She breached the duties arising from a prior joint retainer.
D) She failed to update her letter of engagement.
Correct Answer: C
Explanation: Lawyers who act for clients jointly must not act for one of them on a related matter without addressing the prior joint relationship. Even after one spouse’s death, the surviving client must be advised of potential confidentiality or loyalty concerns and given the option of obtaining independent legal advice.
16. Nicholas is retained by two siblings to draft a partnership agreement for their new landscaping business. Although Nicholas has limited experience with business law, he agrees to take on the file and adapts a template from a joint venture agreement he once reviewed during a construction dispute. He does not address profit-sharing terms, dispute resolution mechanisms, or the process for dissolving the partnership. Months later, one sibling exits the business abruptly and claims entitlement to half the retained earnings. The remaining sibling is shocked that the agreement contains no clause dealing with such a situation.
How did Nicholas fail to meet his professional responsibilities in handling the matter?
A) He used a precedent from a different legal context without adapting it to the client’s specific business needs.
B) He failed to recommend that the siblings execute a separate buy-sell agreement to deal with future ownership changes.
C) He did not hold a joint meeting with both siblings to confirm their shared understanding of the agreement’s financial terms.
D) He accepted the retainer without first advising the clients that he normally practised in another area of law.
Correct Answer: A
Explanation: A lawyer must not accept a matter unless competent to do so or unless they can become competent through adequate preparation. Using a template from an unrelated legal context—without understanding or addressing the core legal and operational issues relevant to a partnership—fails to meet the duty of competence. This can lead to serious consequences for the client and exposes the lawyer to regulatory and professional risk.
17. Mina is acting for a purchaser in the acquisition of a waterfront cottage. The property is in an unorganized township with no municipal services. Mina notes that there is no zoning compliance certificate or recent floodplain mapping, but assumes that her client, an experienced camper, is comfortable with rural risks. She does not raise these issues or confirm with the client. After closing, the buyer discovers that the cottage sits partially on Crown land and is ineligible for building permits due to floodplain restrictions.
What is the most relevant competence issue in this situation?
A) Mina failed to obtain title insurance to cover encroachment onto Crown land.
B) Mina failed to request confirmation of hydro access from the utility company.
C) Mina failed to investigate facts necessary to advise the client on risk.
D) Mina failed to register a restrictive covenant to protect against development.
Correct Answer: C
Explanation: Competent representation involves identifying foreseeable risks and obtaining enough factual context to provide meaningful legal advice. In rural or unregulated areas where use and title issues are common, the lawyer must raise red flags and not assume the client has independently investigated. Silence in the face of potential legal problems constitutes a lapse in professional competence.
18. Marcus has recently expanded his commercial practice to include advising clients on franchise acquisitions. He accepts a retainer to assist a buyer in acquiring a fast-food franchise but uses outdated precedents and fails to review the latest changes under the Arthur Wishart Act. Marcus does not advise the client that the franchisor must provide a disclosure document at least 14 days before any agreement is signed. The transaction closes without delay, but the client later discovers the omission and asks whether they can rescind the agreement. Marcus admits he was unaware of the timing requirement.
What obligation has Marcus most clearly failed to meet?
A) He failed to confirm the franchise brand’s market viability, depriving the client of critical economic data.
B) He failed to stay current on franchise legislation and advise the client about disclosure and rescission rights.
C) He failed to outline the limits of his retainer, especially regarding post-closing rights under the franchise agreement.
D) He failed to recommend third-party valuation services to assess the goodwill being paid for in the purchase price.
Correct Answer: B
Explanation: Lawyers have a duty to maintain competence by staying current on legislative and regulatory developments in their area of practice. When entering a specialized field like franchising, where the legal landscape evolves, counsel must review relevant statutes (such as the Arthur Wishart Act) and advise clients accordingly. Failing to update one's knowledge base or warn clients of statutory rights, such as rescission where proper disclosure is not given, constitutes a clear breach of the duty of competence.
19. Amanda is preparing powers of attorney for a client in a blended family. During the interview, the client refers to “my partner Jesse—who uses they/them pronouns and helps care for my son.” Amanda nods but does not ask for clarification, assuming “partner” means a romantic relationship. In the drafting, Amanda describes Jesse as the client’s “girlfriend” and uses feminine pronouns throughout. After signing, the client later expresses concern that the documents misrepresent their chosen language and relationship dynamics.
What professional responsibility has Amanda most clearly failed to meet?
A) She failed to obtain relevant health information that may affect the client’s capacity to appoint an attorney for personal care.
B) She failed to demonstrate cultural competence by sensitively clarifying identity-based language in the drafting of a personal legal document.
C) She failed to verify the legal authority of Jesse to act under the Power of Attorney for Property.
D) She failed to comply with due diligence obligations under the anti-money laundering and client verification rules.
Correct Answer: B
Explanation: Competence includes cultural awareness and the ability to adapt communication and drafting to reflect clients’ lived realities. Failing to respectfully clarify how the client wants their partner described in such a personal legal document undermines the quality of legal service and the lawyer-client relationship.
20. Matthew is a first-year associate at a business law firm. He is asked by a long-standing client to handle a multi-jurisdictional asset purchase involving several subsidiaries and regulatory filings in two provinces. Although he has never led a transaction of this size or complexity, Matthew assures the client he can manage it. He does not consult with a senior lawyer, review the applicable securities regulations, or allocate tasks to more experienced team members. As a result, he overlooks mandatory disclosure obligations under securities law, leading to administrative penalties and reputational harm for the client.
What is the most appropriate course Matthew should have taken?
A) Delegated the file to law clerks with experience in commercial closings to save time on execution steps.
B) Requested that the client waive liability for errors and acknowledge his limited experience.
C) Declined the file or obtained help from a lawyer with experience in the field.
D) Filed a late registration and sought to rectify the mistake through litigation or settlement.
Correct Answer: C
Explanation: A lawyer must recognize when a matter exceeds their skill and experience. If they cannot become competent without undue risk, delay, or expense to the client, they must consult, refer, or decline the file. Proceeding alone in a complex, unfamiliar area is a breach of competence.
21. Anna is an estate lawyer meeting with a client who wishes to disinherit a child due to estrangement. The client is accompanied by her new spouse, who speaks for much of the meeting and provides information about the family’s financial structure. Anna does not clarify the spouse’s role or speak privately with the client. After the will is signed, the disinherited child challenges the will, claiming undue influence. During the hearing, the spouse’s prior statements are subpoenaed.
What is the lawyer’s most significant confidentiality concern?
A) She allowed a third party to attend the legal meeting without confirming the client’s informed consent, compromising confidentiality and privilege.
B) She failed to have the spouse act as an attesting witness, which may affect the enforceability of the will under the Succession Law Reform Act.
C) She failed to invite the disinherited child to attend the meeting, despite their potential standing in a future will challenge.
D) She failed to make an audio or video recording of the meeting to preserve the accuracy of the client’s testamentary instructions.
Correct Answer: A
Explanation: Lawyers must be vigilant about the presence of third parties during client meetings. Without clear consent, the involvement of a third party may jeopardize confidentiality and privilege. It also creates risk of later disputes about the source and accuracy of legal instructions.
22. Farah is acting for a corporate landlord in negotiating a long-term commercial lease with a national tenant. During the drafting process, Farah mistakenly attaches and emails a prior draft of a different lease, containing sensitive financial concessions made to another tenant in the same building, to counsel for the current tenant. The recipient immediately replies that they received an unexpected document but makes no comment on its contents. Farah decides not to tell her client, assuming no harm was done since the document was likely unopened.
How did Farah fail to meet her professional obligations following the inadvertent disclosure?
A) Farah was required to notify the landlord’s insurance provider of the disclosure to avoid liability for professional negligence.
B) Farah was required to inform the client of the breach and assess whether the inadvertent disclosure could affect the transaction.
C) Farah was required to demand written confirmation that the document was deleted by opposing counsel.
D) Farah was permitted to disregard the incident because the file involved standard commercial terms and was not marked confidential.
Correct Answer: B
Explanation: Where a lawyer inadvertently discloses confidential client information, they are required to inform the client promptly and evaluate whether the breach could have legal or strategic consequences. The duty of loyalty and competence includes being transparent with the client about material errors. Choosing to conceal the breach, even if it seems minor, violates this duty.
23. Sophie is acting for a client purchasing a lakefront cottage. The client expresses concern about possible contamination from a nearby former industrial site. Sophie calls the township to inquire but is told no formal reports exist. She mentions her client’s name during the inquiry. Weeks later, the seller discovers the concern and refuses to close the deal.
What was Sophie’s mistake?
A) She failed to obtain a contractual indemnity addressing environmental liabilities as part of the agreement of purchase and sale.
B) She contacted the municipal authorities on an environmental issue without first securing express written client instructions.
C) She disclosed the client’s name without authorization, potentially undermining confidentiality and affecting the transaction.
D) She relied on verbal responses from municipal staff without requesting formal environmental documentation in writing.
Correct Answer: C
Explanation: A lawyer must not reveal even the identity of a client without proper authority, especially where doing so could affect the client’s legal position. Although Sophie was seeking relevant information, disclosing the client's interest prematurely breached the duty of confidentiality.
24. A real estate lawyer frequently discusses client files with her assistant during lunch breaks in the firm’s shared kitchen. The assistant is not a licensee, and several other professionals from different firms also share the space. One day, a client’s business associate overhears a conversation about a disputed easement and threatens to back out of a financing deal.
What professional obligation has been breached?
A) The lawyer failed to maintain client confidentiality by discussing sensitive legal matters in a shared space accessible to third parties.
B) The lawyer failed to remove reference to the easement from the transfer documents before submitting them to the land registry office.
C) The assistant failed to verify whether the business associate had been granted legal authority to receive file-related information.
D) The client failed to expressly instruct the lawyer not to discuss confidential matters in a semi-public professional environment.
Correct Answer: A
Explanation: Lawyers must safeguard client information from inadvertent disclosure, including avoiding casual discussions in semi-public or shared spaces. Even where the identity of the client is not explicitly stated, overheard information may still lead to reputational or transactional harm.
25. Jorge is retained to structure the sale of a family business. During the process, one sibling confides that he has no intention of honouring the buyout clause and plans to sell his shares immediately after the deal closes. Jorge continues to represent all siblings jointly and does not disclose the conversation. After the deal, a dispute arises, and the other siblings allege that Jorge acted unfairly.
What was Jorge’s error?
A) He failed to maintain complete and accurate trust records during the course of the commercial transaction.
B) He failed to advise the disclosing sibling that confidential information could not be withheld in a joint retainer.
C) He failed to formally register the buyout clause with the appropriate corporate records office before closing.
D) He failed to ensure that all closing documents were executed and held in escrow until the agreement was performed.
Correct Answer: B
Explanation: In joint retainers, there is no presumption of confidentiality between clients. A lawyer must make it clear that anything disclosed by one party must be shared with the others unless they all agree otherwise. Failing to set this expectation risks breaching the lawyer’s duties to the group.
26. Sonia acts for a client purchasing a commercial plaza. The seller is also a long-time client of her firm. Although Sonia has never acted for the seller personally, her firm regularly represents the seller on unrelated landlord-tenant disputes. Sonia doesn’t disclose this to the buyer, assuming it’s irrelevant since she has had no prior direct contact with the seller. The deal proceeds without issue, but when the buyer learns of the firm’s connection, he files a complaint alleging divided loyalty.
What rule has Sonia likely breached?
A) She failed to document and retain undertakings related to title clearance before closing the transaction.
B) She failed to disclose her firm’s pre-existing relationship with the opposing party, giving rise to a potential conflict of interest.
C) She failed to recommend that the seller purchase commercial title insurance to protect against unregistered easements.
D) She failed to amend the standard form agreement of purchase and sale to reflect specific commercial risk concerns.
Correct Answer: B
Explanation: Even where different lawyers within the same firm act on unrelated matters, a lawyer must be mindful of conflicts arising from the firm’s broader client relationships. Where there is a risk to loyalty or perceived impartiality, disclosure and informed consent are necessary. Failure to do so may constitute a breach of the duty to avoid conflicts.
27. Mira is acting for both borrower and lender in a mortgage transaction. The lender is a small private investor, not an institutional client. Mira obtains both parties’ consent but does not advise the lender to seek independent legal advice. Later, the borrower defaults, and the lender alleges Mira failed to warn him of the borrower’s poor credit history, which she had known from previous work.
What is the most significant conflict rule Mira violated?
A) She failed to recommend independent legal advice to a non-institutional lender in a joint retainer.
B) She failed to submit a requisition to register a second-ranking charge against title prior to the advance of funds.
C) She failed to disclose the borrower’s employment and credit history obtained during the earlier unrelated matter.
D) She failed to obtain a separate signed waiver from each party before commencing the dual mortgage representation.
Correct Answer: A
Explanation: Where a lawyer acts in a mortgage transaction involving a private lender and a borrower, proper conflict screening and disclosure are not enough. The lawyer must also recommend (and in some cases, require) that the less sophisticated party obtain independent legal advice. This ensures informed consent and protects against future allegations of divided loyalty.
28. Jared is asked to prepare mirror wills for a married couple. They jointly instruct him that their estate should pass equally to their children. A year later, the husband returns alone and asks Jared to revise his will to leave everything to a new partner. Jared accepts the retainer and drafts the will without informing the wife or recommending separate legal counsel.
What has Jared most likely failed to do?
A) Register the new will with the Office of the Public Guardian and Trustee.
B) Preserve solicitor-client privilege.
C) Withdraw due to an unresolved joint retainer conflict.
D) Confirm the testator’s capacity through medical certification.
Correct Answer: C
Explanation: In a joint retainer, lawyers owe duties to both clients. If one spouse later seeks to change the arrangement, the lawyer must recognize that a conflict has arisen. Unless the clients are no longer in a relationship or the change is consented to, the lawyer must decline the new instructions and withdraw.
29. Liam is a business lawyer representing two parties forming a joint venture to acquire an income property. He confirms the joint retainer and obtains written consent. Midway through negotiations, the clients disagree on who will control decision-making authority. Liam continues to act for one client while suggesting the other hire new counsel.
Which rule governs Liam’s obligation at this point?
A) He must seek prior approval from the Law Society before continuing to represent either party following a breakdown in the joint retainer.
B) He must withdraw from representation unless both clients consent to his continued involvement on behalf of only one party.
C) He must appoint a neutral third-party mediator to resolve the internal dispute before continuing the legal work.
D) He must file a formal notice of withdrawal with the corporate registry before continuing to act in any capacity.
Correct Answer: B
Explanation: When a contentious issue arises in a joint retainer and the parties do not agree to allow the lawyer to act for one of them, the lawyer must withdraw from representing both. Continuing to act for one without full agreement would breach the duty of loyalty and compromise impartiality.
30. A real estate lawyer agrees to act for both transferor and transferee in the transfer of title between a parent and adult child. The transaction involves refinancing and reallocation of equity. The lawyer does not assess whether their interests might diverge, nor does he recommend independent legal advice. After closing, the parent alleges they did not understand the consequences and lost expected rights.
What is the core issue with the lawyer’s conduct?
A) He failed to ensure that the title transfer was registered on time in accordance with the Land Titles Act.
B) He failed to record the fair market value on the electronic transfer form submitted through the land registration system.
C) He failed to sign and retain a dual representation acknowledgment form in compliance with Law Society guidelines.
D) He failed to assess whether a conflict of interest existed and improperly acted for both parties without confirming aligned legal interests.
Correct Answer: D
Explanation: Even where clients consent, lawyers must not act for both parties if a divergence of interests is likely. Transfers between related persons often carry legal and financial consequences that may not be fully appreciated. Without confirming alignment and suggesting independent advice, the lawyer risks compromising both parties' rights.
31. Nicole acts for a client purchasing a commercial property with two long-term tenants. After reviewing the title and leases, she notices discrepancies in the rental income and the lease renewal provisions. The client is eager to close and tells Nicole not to worry about “minor paperwork issues.” Nicole complies and does not mention the discrepancies in her final report. Months later, the client discovers that one tenant had already vacated, causing a major income shortfall.
What duty did Nicole most clearly breach?
A) She failed to obtain and submit the applicable zoning compliance certificate from the municipal planning department.
B) She failed to disclose the discrepancy in lease terms to the lender, contrary to best practices in mortgage transaction reporting.
C) She failed to act with honesty and candour by omitting material risks that could have affected her client’s decision to proceed.
D) She failed to confirm the registration status of the vendor’s corporation with the provincial corporate registry before closing.
Correct Answer: C
Explanation: A lawyer must inform the client of information known to the lawyer that may materially affect the client’s interests. Even if the client is eager to proceed, the duty of honesty and candour requires the lawyer to highlight risks, especially where omissions may impair the client’s ability to make informed decisions.
32. Wesley is retained to incorporate a holding company and prepare unanimous shareholder agreements. During negotiations, one shareholder threatens to sue the others if a valuation clause is added. Wesley advises the group that threatening litigation could be effective in getting the clause removed. He does not mention that such threats may be inappropriate or that settlement discussions might resolve the issue.
What duty did Wesley most clearly fail to uphold?
A) He failed to ensure that all communications and agreements were available in both official languages when required by federal incorporation standards.
B) He failed to caution against the improper use of litigation threats as a tactic to influence shareholder negotiations.
C) He failed to secure and protect privileged communications disclosed during the drafting process for the shareholder agreement.
D) He failed to report an internal conflict of interest to the Law Society as soon as a dispute arose between the corporate clients.
Correct Answer: B
Explanation: Lawyers must not threaten or advise clients to threaten legal proceedings, including regulatory or penal measures, without reasonable and lawful justification. Encouraging coercive tactics to influence negotiations is professionally improper and may also undermine the legal process.
33. Laura meets with a client and his adult children to draft his will and powers of attorney. The children speak for most of the meeting, and Laura does not speak with the client alone. The will is later challenged on the basis that it reflects the children's wishes rather than the testator’s. Laura defends her actions by claiming the client appeared to agree with everything said in the room.
What professional obligation did Laura most clearly neglect?
A) She failed to register the will in accordance with the Succession Law Reform Act.
B) She failed to document the value of the estate assets.
C) She failed to recommend that the children act as co-executors.
D) She failed to assess whether the client was acting under undue influence.
Correct Answer: D
Explanation: A lawyer must ensure that the client’s instructions reflect their own wishes and are not the product of pressure from others. Especially in estate planning, when a client is accompanied by potential beneficiaries, the lawyer must confirm instructions directly and independently to avoid the appearance of undue influence.
34. Martin is a solicitor retained to structure the purchase of shares in a family-owned business. He discovers an error in the share register that affects voting rights. He considers correcting it quietly but realizes the change will negatively affect one shareholder’s interests. Martin decides not to disclose the issue to his client, fearing it might delay closing.
What duty has Martin breached?
A) The duty to refer the client for tax advice.
B) The duty to notify the Law Society of improper resolutions.
C) The duty of honesty and candour in communicating material issues.
D) The duty to disclose the shareholder registry to the government.
Correct Answer: C
Explanation: Lawyers must inform their clients of facts they know that could materially affect the client’s decision-making. Withholding adverse information, even for expediency, violates the duty to act with honesty, loyalty, and in the client’s best interests.
35. A real estate solicitor misses a deadline to requisition a survey confirming setback compliance. After closing, the municipality issues an order to remove a shed that encroaches on municipal land. The lawyer realizes her omission may have contributed to the client’s loss but does not inform the client. She assumes the risk is minimal and believes the client is unlikely to notice.
What must the lawyer do under the Rules?
A) She must contact the municipality to request that the order be reconsidered and leniency granted based on good faith.
B) She must promptly inform the client of the error, recommend independent legal advice, and evaluate whether continued representation is appropriate.
C) She must register a caution on title and refer the matter to the title insurer for possible indemnification or adjustment.
D) She must attempt to resubmit the requisition post-closing and notify the other side of the procedural irregularity.
Correct Answer: B
Explanation: When a lawyer becomes aware of an error that may harm the client and cannot be readily corrected, they must disclose it, suggest the client seek independent legal advice, and assess whether continued representation would create a conflict. Failure to do so could prejudice the client and breach ethical obligations.
36. Raj is retained to assist in the closing of a commercial lease and charges a flat fee of $2,800. Without disclosing it, he adds $150 as a “file administration” charge for photocopying, file storage, and clerical support. The client later asks for a breakdown and is surprised to learn these charges were embedded. Raj claims these were standard internal disbursements and not subject to specific itemization.
What rule did Raj most clearly breach?
A) He failed to apply the proper HST on his disbursements.
B) He failed to obtain the client’s prior consent to the legal strategy.
C) He failed to disclose disbursements in a timely and transparent manner.
D) He charged interest on overdue fees without including it in the retainer.
Correct Answer: C
Explanation: Disbursements must be reasonable, directly related to the client’s matter, and disclosed clearly and separately. Lawyers may not profit from disbursements or conceal them in ambiguous “admin” categories. Clients are entitled to a transparent and itemized account to assess value and fairness.
37. Stephanie accepts a money retainer of $5,000 to prepare multiple estate planning documents. After drafting the initial wills and powers of attorney, she transfers $3,500 from trust to general account before delivering an account to the client. When the client questions the withdrawal, Stephanie says she applied the funds against "progress to date."
What was Stephanie's most serious breach?
A) She transferred funds from trust before delivering a bill.
B) She failed to register the wills with the court.
C) She collected a flat fee in a matter requiring hourly billing.
D) She charged for estate documents without consulting heirs.
Correct Answer: A
Explanation: A lawyer may not withdraw funds from trust to pay for fees unless the work is completed, a bill has been delivered to the client, and sufficient funds are available in trust. Transferring funds prior to delivering a bill is a breach of By-Law 9 and constitutes misappropriation.
38. A business law firm offers a startup incorporation package for $1,200 plus “disbursements as incurred.” The lawyer includes a courier charge of $85 for delivering documents to her client across the city. The actual courier fee was $28, and the balance was attributed to “coordination and priority handling.” The client disputes the charge.
What is the firm’s error?
A) Including courier costs as taxable disbursements.
B) Charging more than the actual disbursement cost, effectively profiting from it.
C) Charging the client before issuing a retainer letter.
D) Including courier fees without submitting a mileage log.
Correct Answer: B
Explanation: Lawyers must not profit from disbursements. They may only charge clients the actual cost incurred, and may not add markups, administrative padding, or disguised premiums. Misrepresenting the cost of a disbursement is inconsistent with transparency and fairness principles.
39. Derek represents a buyer in a real estate purchase. The lender wires funds into his trust account. Without confirming or issuing a bill, Derek pays himself from the proceeds. He claims the retainer agreement stated he was authorized to do so “as appropriate.”
What duty did Derek breach?
A) He failed to notify the mortgage lender in writing of changes in the adjusted purchase price prior to registration.
B) He failed to seek advance written consent before making a disbursement from trust exceeding the threshold amount of $500.
C) He paid himself from trust without delivering a bill and before completion of the work, contrary to the trust accounting rules.
D) He failed to verify the purchaser’s identity and retain records in accordance with the client identification and verification rules.
Correct Answer: C
Explanation: A lawyer may not pay themselves from trust unless (1) the work has been completed, (2) a bill has been delivered to the client, and (3) sufficient funds are available. Generic wording in a retainer is not sufficient to override these procedural protections.
40. Zahra represents co-owners of a rental duplex in a refinancing matter. She delivers a single statement of account listing a flat fee of $2,000 and splits it evenly between both clients. One client later argues that they only required title transfer assistance and should not share full responsibility for the mortgage processing work.
What should Zahra have done?
A) She should have charged both clients the same flat fee and documented the amount as a shared joint retainer expense.
B) She should have issued separate statements of account, clearly explaining how the fees were allocated based on services rendered.
C) She should have applied to court for authorization to apportion legal fees among multiple clients under joint financial responsibility.
D) She should have filed a lien or registered a Land Registry surcharge to preserve her entitlement to recover unpaid legal fees.
Correct Answer: B
Explanation: In joint retainers, lawyers must divide fees equitably unless the clients agree otherwise, preferably in writing. The division must be clear and justified based on the work performed for each party. Issuing a joint bill without clarifying the allocation risks disputes and violates the duty of fairness in billing.
41. Daniel is retained by two siblings to purchase an investment property. During initial discussions, he explains the basic terms of joint ownership but does not clarify the division of responsibilities, the procedure for exit, or what happens in the event of death. He sends a single-page retainer stating he is acting for both. After a falling out, one sibling claims she was unaware there would be no survivorship rights under the tenancy in common arrangement and alleges Daniel failed to explain material consequences.
What professional step did Daniel most clearly omit?
A) He failed to notify the land registry office that the ownership should reflect a joint tenancy with a right of survivorship.
B) He failed to recommend that unrelated co-owners purchase title insurance to cover disputes arising from co-ownership risks.
C) He failed to clarify the scope and terms of his retainer in writing to manage expectations.
D) He failed to collect the second sibling’s driver’s licence under By-Law 7.1.
Correct Answer: C
Explanation: Lawyers must provide a clear engagement letter or retainer agreement that outlines the nature and scope of representation, including issues like co-ownership structure, division of responsibilities, and the implications of ownership form. Failure to confirm these terms in writing risks misunderstanding and undermines client confidence.
42. Sarah meets with an elderly estate planning client and her daughter to discuss drafting a will and power of attorney. The daughter speaks for most of the meeting, and Sarah does not follow up with the client alone. No written retainer or engagement letter is provided. The daughter later accuses Sarah of mishandling the file when a different family member is named as attorney.
What obligation did Sarah most clearly breach?
A) Failing to include a confidentiality clause in the will.
B) Failing to confirm who her client was and document the retainer.
C) Failing to include charitable donations in the will.
D) Failing to register the power of attorney with the Ontario Trustee.
Correct Answer: B
Explanation: It is essential that lawyers identify the client and establish that they are taking instructions from the correct person. When third parties are present, especially in family matters, the lawyer must confirm the source of instructions and document the retainer to avoid confusion and preserve client autonomy.
43. A client hires Josh to incorporate a holding company and mentions he is also considering estate planning. Josh agrees to begin with the incorporation. As the file progresses, the client emails a long list of unrelated estate questions. Josh replies briefly but never confirms that he is acting on the estate matter. Months later, the client accuses Josh of failing to complete the estate work and causing delays.
What should Josh have done to prevent this dispute?
A) He should have sent a formal message explaining that the incorporation file did not include any estate planning services.
B) He should have referred the client directly to an estate trustee or third-party advisor upon receiving the first estate-related inquiry.
C) He should have declined to answer any estate-related questions until a new retainer was signed and the scope of work confirmed.
D) He should have clearly documented that estate planning was not included in the original engagement and confirmed the limits in writing.
Correct Answer: D
Explanation: Lawyers must clearly define and document the scope of their retainer. Where clients begin to inquire about unrelated matters, the lawyer should clarify whether they are taking on the additional work and confirm any limitations to avoid ambiguity and potential liability.
44. Catherine accepts a limited scope retainer to assist with drafting a cohabitation agreement. After providing the first draft, she does not hear from the client for several months. She never confirms in writing that her role is limited, and the client assumes she is still available to negotiate with the partner’s counsel. A conflict later arises and the client alleges abandonment.
Which professional step should Catherine have taken?
A) She should have filed a non-engagement statement with the Law Society to formally disclaim further professional responsibility.
B) She should have brought a motion for directions in court to clarify the scope of her retainer before terminating the relationship.
C) She should have issued a notice of withdrawal under Rule 3.7-1 to avoid confusion about her continuing involvement in the matter.
D) She should have delivered a written retainer agreement clearly outlining the nature, limits, and duration of the limited scope engagement.
Correct Answer: D
Explanation: Where services are provided on a limited scope basis, the lawyer must document the scope and provide a written summary to the client. Without clear boundaries, the client may misunderstand the level of ongoing service, leading to dissatisfaction or allegations of neglect.
45. Ahmed is retained in a commercial leasing transaction but fails to update the client for over six weeks while awaiting a zoning certificate. The client grows anxious, sends multiple emails, and finally demands to know if the deal has collapsed. Ahmed responds that delays were expected and nothing required updating. The client complains about poor service.
What professional obligation is most clearly engaged?
A) He had a duty to report opposing counsel’s failure to respond promptly under the professional courtesy rules.
B) He had a duty to ensure that the lease registration was completed and filed with the land registry within the prescribed 60-day period.
C) He had a duty to maintain regular communication with the client and provide timely updates regarding progress and delays.
D) He had a duty to document and confirm any undertakings given or received in writing throughout the transaction.
Correct Answer: C
Explanation: Lawyers must communicate regularly and proactively with clients, especially during delays or periods of uncertainty. Clients should not be left guessing about file status. Even when no significant changes occur, periodic updates help maintain trust and demonstrate diligence.
46. Jaspreet is handling the closing of a residential transaction for a client who consistently ignores emails, misses signing appointments, and fails to provide direction on critical requisitions. As the closing date approaches, Jaspreet grows increasingly concerned about his ability to meet deadlines and protect the client’s interests. He decides to withdraw but sends only a short text message notifying the client. He does not inform the lender or purchaser’s counsel.
What is Jaspreet’s most serious error?
A) He failed to obtain court authorization before withdrawing from representation in the days leading up to closing.
B) He failed to issue a written non-engagement letter to opposing counsel and confirm that no further steps would be taken on the file.
C) He failed to provide reasonable notice of withdrawal and take necessary steps to protect the client’s interests.
D) He failed to update the parcel register and confirm the title abstract was clear of encumbrances before ceasing to act.
Correct Answer: C
Explanation: Lawyers must give reasonable notice when withdrawing and take steps to avoid prejudice to the client, including ensuring that other parties and institutions are properly informed. Withdrawal must be done in an orderly, documented, and timely manner to allow the client to obtain alternate counsel.
47. Kevin is retained to prepare a shareholders’ agreement. Midway through the file, his client refuses to accept legal advice on key liability clauses and insists on unreasonable demands that contradict standard corporate practices. Communication deteriorates, and Kevin no longer feels he can effectively represent the client. He informs the client by email that he is withdrawing and closes the file.
What additional obligation did Kevin most likely overlook?
A) He failed to prepare a compliance certificate for the CRA.
B) He failed to return all client documents and property.
C) He failed to register a caution with the corporate registry.
D) He failed to notarize the prior draft of the agreement.
Correct Answer: B
Explanation: Upon withdrawal, a lawyer must return all papers and property the client is entitled to receive and assist in transitioning the matter. Simply closing the file without organizing the return of materials does not meet the standard of a professionally managed withdrawal.
48. Marissa has acted for a couple jointly on an estate freeze. After a breakdown in their relationship, one spouse becomes verbally abusive and refuses to follow her instructions. The other spouse continues to provide conflicting directions. Marissa determines that she can no longer act, but the spouses disagree over who should retain the original file. Marissa asserts a solicitor’s lien for unpaid fees and withholds the documents.
What should guide Marissa’s decision regarding the lien?
A) The solicitor’s lien may only be enforced if doing so will not materially prejudice the clients’ ability to complete the legal matter.
B) The solicitor’s lien should be automatically asserted in all joint retainers to secure payment for professional legal services.
C) The solicitor’s lien must be waived entirely in estate planning and family law matters under the law society’s special category rules.
D) The solicitor’s lien may be enforced against joint clients only after obtaining a court order confirming entitlement to the file contents.
Correct Answer: A
Explanation: While a solicitor has a right to assert a lien for unpaid fees, it must not be enforced where doing so would materially prejudice the client’s position in an uncompleted matter. Marissa must assess the impact of the lien on both parties’ ability to proceed and act accordingly.
49. A real estate lawyer is preparing to leave her current firm to join a boutique firm. She has carriage of six active files and intends to take them with her. Without notifying her current firm, she begins informing clients of her move and asking them to sign authorizations to transfer the files. The firm only learns of this when one client calls to ask about a closing.
What is the key issue under the withdrawal rules?
A) She failed to include harmonized sales tax on the transfer billing statements, which violates proper client invoicing procedures.
B) She was not permitted to contact any of her former clients after leaving the firm, even if she had carriage of their files.
C) She was required to coordinate with her firm before initiating client contact to ensure clients received balanced notice and informed options.
D) She was obligated to resign from the Law Society prior to any client contact, as part of the transition process to a new firm.
Correct Answer: C
Explanation: When a lawyer leaves a firm, both the departing lawyer and the firm must work together to notify affected clients and ensure they have the information needed to decide whether to stay with the firm, follow the lawyer, or retain someone else. Acting unilaterally disrupts this process and risks undermining client choice.
50. Samira is retained on a limited-scope basis to assist in the drafting of a co-ownership agreement for a rental duplex. After preparing the draft, she informs the clients that her services are complete. Weeks later, one co-owner becomes uncooperative, and the other demands that Samira intervene and attend negotiations. She declines but fails to send a formal disengagement letter or return trust funds.
What professional duty has Samira most clearly neglected?
A) She failed to file a signed joint retainer waiver form confirming that each client understood the limitations of her advice.
B) She failed to notify the Law Society of a broken retainer.
C) She failed to register the change in file status with the applicable municipal registry prior to disengagement.
D) She failed to document the conclusion of her involvement and address trust account reconciliation.
Correct Answer: D
Explanation: Even in limited-scope retainers, lawyers must provide a clear written confirmation when the representation ends. This includes returning unearned trust funds and avoiding confusion about ongoing obligations. A proper closure protects both the lawyer and the client.
51. A real estate lawyer is notified by the Law Society about a client complaint regarding delays in closing a transaction. The lawyer believes the complaint is without merit and ignores three follow-up emails from the investigator, assuming it will resolve on its own. Months later, the lawyer receives a formal notice of professional misconduct related not to the complaint’s substance, but to his lack of response.
What obligation did the lawyer breach?
A) He failed to properly file the statutory land transfer tax affidavit with the Ministry of Finance in accordance with registration procedures.
B) He failed to correspond with the opposing party’s solicitor regarding extensions and adjustments to the transaction timeline.
C) He failed to respond promptly and fully to regulatory communications from the Law Society regarding an active complaint file.
D) He failed to notify the title insurer of delays and risk of default, contrary to standard post-closing practice.
Correct Answer: C
Explanation: Regardless of the perceived merit of a complaint, lawyers have an independent obligation to respond fully and promptly to any inquiry from the Law Society. Failure to do so may constitute professional misconduct, even if the underlying complaint is later dismissed.
52. Terence is a business lawyer who shares office space with a former licensee whose license was revoked following a misconduct finding. Terence allows the former licensee to answer phones and occasionally review corporate filing documents. He does not inform the Law Society of the arrangement and assumes the former licensee is “just helping out.”
What rule has Terence violated?
A) He failed to report a potential professional error to LAWPRO in accordance with the mandatory claim notification provisions.
B) He failed to register his business name under the Business Names Act, despite operating from shared premises with signage.
C) He failed to include the licensee on firm letterhead.
D) He employed a former licensee in a legal capacity without approval from the Law Society Tribunal.
Correct Answer: D
Explanation: Lawyers must not employ or associate with individuals whose license has been suspended or revoked in any legal capacity unless expressly approved by a panel of the Law Society Tribunal. Doing so exposes the public to unauthorized legal services and risks regulatory discipline.
53. A lawyer is acting for a private investor in a mortgage transaction. During the file, the lawyer discovers that a junior associate at another firm misrepresented the nature of the borrower’s title. The lawyer believes this was intentional and not just a mistake. She decides not to report the issue, fearing backlash.
What obligation does the lawyer have?
A) She must notify the mortgage broker immediately so that financing arrangements can be reviewed and possibly adjusted.
B) She must report the misconduct if it raises a serious concern about the other licensee’s honesty, integrity, or professional competence.
C) She must report the conduct only if the client asks her to do so and provides written authorization for disclosure.
D) She may report the matter anonymously through an internal ethics hotline maintained by her firm to preserve confidentiality.
Correct Answer: B
Explanation: Lawyers must report serious misconduct by licensees that raises questions about their honesty, trustworthiness, or competence. Failing to report such conduct may itself be a breach of the lawyer’s professional obligations to the Law Society and the public.
54. Veronica’s client tells her that a previous lawyer misappropriated trust funds. Veronica encourages the client to pursue civil remedies but does not advise her to report the matter to the Law Society or mention the Compensation Fund. She reasons it’s not her place to get involved with regulatory matters.
What did Veronica fail to do?
A) She failed to notify LAWPRO of the possibility of third-party negligence involving another licensee’s professional error.
B) She failed to confirm whether the misappropriated funds were protected by a title insurer through the original transaction.
C) She failed to inform the client of the option to report professional misconduct and advise on the Compensation Fund process.
D) She failed to obtain written instructions from the client before pursuing recovery options through private legal proceedings.
Correct Answer: C
Explanation: When a client raises serious allegations against another licensee, such as misappropriation, a lawyer must inform the client about their right to report the matter and encourage them to do so. The client must also be advised of the Law Society’s Compensation Fund.
55. Leonard, a solicitor, is charged with tax evasion under the federal Income Tax Act. He does not report the charge to the Law Society, thinking it is a private matter unrelated to client work. A conviction follows, and the Law Society learns about it through media reports.
What professional obligation did Leonard breach?
A) He failed to notify the Canada Revenue Agency of all professional income earned in the course of his retained engagements.
B) He failed to report criminal charges related to dishonesty, as required where the conduct may impact professional trust and integrity.
C) He failed to immediately withdraw from all active tax planning matters upon being charged under federal legislation.
D) He failed to execute a formal non-disclosure agreement to prevent the dissemination of privileged information during the investigation.
Correct Answer: B
Explanation: Lawyers must self-report any criminal charges that allege dishonesty or relate to their professional practice, including tax offences under federal statutes. This requirement applies even if the lawyer considers the charges unrelated to active files.
56. Julie is retained to represent a condominium board in a dispute over common element usage. During a tribunal hearing, she becomes frustrated with opposing counsel and states, “Even my paralegal could out-argue you.” The chair does not reprimand her, but several board members later express discomfort with her tone. Julie believes her conduct was merely “vigorous advocacy.”
What ethical obligation did Julie most clearly breach?
A) She breached the duty to refrain from submitting inflammatory pleadings.
B) She failed to bring a procedural motion to address delay.
C) She failed to treat the tribunal and other licensees with courtesy and respect.
D) She violated the rule against giving legal opinions in public.
Correct Answer: C
Explanation: Lawyers must remain courteous, civil, and respectful in all dealings with the tribunal and other licensees. Even during adversarial proceedings, unprofessional or disparaging remarks undermine the integrity of the profession and may attract regulatory discipline, regardless of whether the tribunal responds.
57. Bob is acting for a private investor seeking to unwind a share purchase due to alleged misrepresentation. During cross-examination, Bob repeatedly interrupts the witness, raises his voice, and suggests facts that are not in evidence. He continues this approach despite the panel chair cautioning him. Bob defends his conduct as “strategic pressure.”
What is the most relevant advocacy rule Bob violated?
A) The duty to avoid unnecessary adjournments.
B) The duty to avoid abuse or mistreatment of witnesses.
C) The duty to submit all cross-examination questions in advance.
D) The duty to refuse all undertakings until discovery is complete.
Correct Answer: B
Explanation: Lawyers must not abuse, harass, intimidate, or needlessly inconvenience witnesses. The adversarial process must not be misused to pressure or discredit witnesses through improper means. Disregarding tribunal instructions compounds the ethical violation.
58. Noah is acting for a landlord in a commercial tenancy dispute involving alleged arrears and damage to the premises. During preparation for the hearing, the landlord gives Noah a building inspection report prepared by a professional engineer that documents poor maintenance over the past five years—some of which predates the current tenant’s occupancy. The report contradicts the landlord’s claim that the tenant caused all the damage. Noah decides not to disclose the report, even though it was prepared for the landlord’s own insurance purposes and is directly relevant to the issues in dispute.
What advocacy rule has Noah most clearly breached?
A) He failed to take adequate steps to enter the inspection report into evidence through a qualified expert witness.
B) He failed to seek specific instructions from his client regarding whether the report should be included in the trial record.
C) He failed to ensure the dispute was properly referred to mediation before proceeding to a full hearing.
D) He knowingly withheld relevant evidence in his client’s control, breaching his duty not to mislead or suppress material facts.
Correct Answer: D
Explanation: Lawyers must not knowingly suppress or conceal evidence that should be disclosed, particularly when it materially affects the tribunal’s ability to decide the matter fairly. Withholding unfavourable evidence undermines both the process and the lawyer’s duty as an officer of the court.
59. During a zoning tribunal appeal, Terence realizes that the opposing party has mistakenly failed to file a crucial document required under the procedural rules. His client insists they capitalize on the error. Terence considers advising the tribunal of the mistake but ultimately stays silent.
What obligation should have guided Terence’s conduct?
A) He must not permit his client to benefit from a procedural irregularity that does not affect the substantive resolution of the dispute.
B) He must alert the tribunal to any procedural deficiency, regardless of whether it influences the outcome of the proceeding.
C) He must file a formal counterclaim to ensure procedural fairness and preserve his client’s right to appeal the final decision.
D) He must submit the missing procedural document himself to ensure a complete evidentiary record and avoid confusion.
Correct Answer: A
Explanation: Lawyers must discourage clients from gaining advantages based on oversights that do not go to the merits of the case. The focus of advocacy must be on substance, not technical trickery. Deliberately exploiting such mistakes undermines fairness and credibility.
60. Elena is representing a property owner in a boundary dispute. Her client provides an affidavit stating that the fence in question had stood “unchallenged since 1985.” Elena later finds municipal records indicating a complaint in 1994 but says nothing. She files the affidavit without modification.
What rule did Elena breach?
A) She failed to conduct and submit a current parcel register to confirm the legal boundary before filing her materials.
B) She failed to address or distinguish expert opinion evidence filed by the opposing party in support of their boundary position.
C) She failed to ensure that the affidavit was properly commissioned and sealed prior to inclusion in the tribunal record.
D) She misled the tribunal by knowingly submitting incomplete or inaccurate evidence that contradicted known information.
Correct Answer: D
Explanation: Lawyers must not mislead the tribunal, directly or indirectly. If the lawyer knows that submitted evidence omits or contradicts known facts, they must not rely on it without addressing the inconsistency. Submitting a misleading affidavit is a serious ethical violation.
61. Janice is a real estate lawyer who uses a cloud-based platform to manage client closings and share documents electronically. The platform was recommended by a friend, and Janice did not review the provider’s terms of service or data storage practices. She uploads signed purchase documents for a residential transaction without applying password protection or file access controls. Two weeks later, the client discovers their SIN and banking information were used to open a fraudulent line of credit. The Law Society initiates an investigation.
Which aspect of Janice’s technology use breaches her professional obligations?
A) She failed to inform the title insurer that the transaction documents were uploaded to a non-certified platform.
B) She failed to report the security breach to the client’s mortgage lender after learning of the fraud.
C) She failed to use adequate safeguards when handling client data through a third-party provider.
D) She failed to retain a physical copy of the closing documents in her office for seven years post-closing.
Correct Answer: C
Explanation: Lawyers must ensure that any third-party technology used to handle or transmit client information meets reasonable security standards, particularly where personal or financial data is involved. This includes understanding data storage practices, implementing access restrictions, and maintaining control over who can view or download sensitive materials. Janice’s failure to assess the platform’s security features or apply basic protections violates her obligation to safeguard client confidentiality.
62. Nathan operates a solo wills and estates practice in a small town. He stores client files in a back room at his office and often relies on memory to track file status. When a former client’s family contacts him for a copy of the final signed will, Nathan realizes the will cannot be located. His part-time clerk says they believed the file had been closed and discarded, but there is no written policy governing document retention or destruction.
What professional obligation did Nathan fail to meet in this situation?
A) He failed to confirm whether the client intended to file the will with the court before death.
B) He failed to set up a dual-authentication system to control access to original documents.
C) He failed to establish a reliable file management and retention system to ensure preservation of client documents.
D) He failed to personally supervise the drafting of the will in accordance with estate planning standards.
Correct Answer: C
Explanation: Lawyers are responsible for ensuring that client property, including signed estate documents, is securely preserved and retrievable for as long as needed. This obligation includes implementing a file retention and destruction policy that is clearly communicated to staff. A disorganized or informal approach to document handling risks loss of critical records and undermines the standard of competence and client service required under the Rules of Professional Conduct.
63. Talia is acting for a corporate landlord in a commercial lease renewal involving multiple tenants and staggered expiry dates. She identifies that one unit’s lease term is ending a month earlier than expected and drafts a renewal offer to be served within the notice period required by the lease. However, she forgets to calendar the actual deadline and becomes distracted with another file. When she follows up three weeks later, she realizes the notice deadline has passed and the tenant is now entitled to vacate or demand new terms. Talia explains that she tracks deadlines informally through handwritten notes and tries to recall key dates mentally.
What was Talia’s most significant time management error?
A) She failed to file the renewed lease with the appropriate land registry office within the original lease term.
B) She failed to implement a reliable deadline tracking system to manage critical file dates and time-sensitive steps.
C) She failed to confirm the tenant’s intentions in writing before the expiry date as a precautionary measure.
D) She failed to review the renewal clause with litigation counsel before offering revised terms to the tenant.
Correct Answer: B
Explanation: A lawyer must use reliable reminder systems, manual or electronic, to track limitation periods, deadlines, and time-sensitive tasks. Relying solely on memory or informal notes is insufficient, especially in complex transactions like commercial leasing. A missed renewal notice deadline can have serious consequences, and the failure to use a proper system constitutes a clear time management breach.
64. Deepa receives a call from a prospective client interested in setting up a corporate reorganization involving the rollover of shares to a holding company. During the call, the client outlines confidential tax planning strategies, identifies family members involved, and discloses past CRA audit issues. Deepa listens attentively but does not take written notes, run a conflict check, or open a preliminary file, as no formal retainer is signed. Months later, the client accuses her of misusing confidential details in another unrelated file.
What best practice did Deepa fail to follow?
A) She failed to ensure that the holding company was structured with the appropriate share classes before submitting articles of incorporation.
B) She failed to initiate a conflict check and record confidential intake details as part of a preliminary client file.
C) She failed to send a written follow-up summarizing the client’s tax goals and attaching a draft opinion for review.
D) She failed to notify corporate counsel that the restructuring involved prior audit exposure and tax-sensitive filings.
Correct Answer: B
Explanation: Even before formal retainer, if confidential information is disclosed, a lawyer must open a file and document the interaction. This supports conflict checks and ensures there is a record of sensitive disclosures that may later become relevant.
65. Daniel is acting for a developer in drafting an agreement of purchase and sale for a commercial condominium unit. Due to time constraints, he asks his legal assistant to prepare a revised draft reflecting several last-minute changes to the deposit schedule and closing conditions. The assistant mistakenly reuses a prior version without incorporating the updated terms. Daniel does not review the draft before the assistant emails it directly to the purchaser’s lawyer. The client later expresses frustration that critical protections were omitted.
What did Daniel most clearly fail to do?
A) He failed to complete and file a solicitor’s certificate of independent legal advice on behalf of the client before signing.
B) He failed to confirm that his assistant held valid notarial credentials before allowing signature-related tasks.
C) He failed to recommend that the client obtain an environmental assessment before entering into the purchase agreement.
D) He failed to adequately supervise the assistant’s work before it was communicated externally.
Correct Answer: D
Explanation: Lawyers remain responsible for all work delegated to support staff. Supervision must be direct and active, especially when client-facing or substantive communications are involved. Failing to review an assistant’s work before it is shared externally is a serious lapse.
66. Evelyn is a real estate lawyer who receives a $100,000 deposit from a purchaser under an agreement of purchase and sale. She deposits the funds into her mixed trust account and proceeds to disburse part of it two days later to pay a title searcher and courier. However, she later learns that the bank placed a seven-business-day hold on the funds. The purchaser’s cheque is returned NSF, but the payments have already cleared.
What trust accounting rule did Evelyn most clearly breach?
A) She failed to place the funds into a designated interest-bearing trust account held specifically for large deposits.
B) She failed to file a requisition under Form 9A in advance of disbursing trust funds for third-party services.
C) She disbursed trust funds before confirming that the deposited funds had cleared through the banking system.
D) She deposited the client’s certified cheque into the firm’s general account instead of its designated trust account.
Correct Answer: C
Explanation: Lawyers must not disburse funds from trust until the deposited funds have cleared. Disbursing before clearance, especially where the cheque is later dishonoured, can result in a trust shortage. Evelyn is now responsible for covering the shortfall using firm funds and reporting the breach if uncorrected.
67. Samuel is retained to incorporate a company and receives $5,000 from the client as a retainer for legal fees and anticipated disbursements. Without billing the client, he transfers $3,000 from trust to his general account. He makes the transfer via online banking but does not complete or retain Form 9A.
What is Samuel’s most serious professional error?
A) He failed to complete and retain the required Form 9A documentation to support an electronic transfer of trust funds.
B) He failed to properly record and reconcile his HST collections in the firm’s fees book and disbursements register.
C) He failed to confirm and record the corporation’s assigned business number prior to issuing corporate documents.
D) He failed to file a Form 1 incorporating document with the Ministry of Public and Business Service Delivery.
Correct Answer: A
Explanation: Trust transfers via electronic means must be supported by a completed and retained Form 9A and confirmation printout. This process ensures transparency, prevents errors, and meets the record-keeping obligations under By-Law 9. Skipping this documentation risks discipline and audit failures.
68. Anna accepts a money retainer of $10,000 from a new estate planning client. She deposits the entire amount into her general account and begins drafting the will and trust structure. She reasons that the funds will eventually be earned and finds trust accounting too complex.
What fundamental rule did Anna violate?
A) She failed to notify the Canada Revenue Agency of the new client retainer for regulatory tracking purposes.
B) She deposited advance funds for legal services directly into her general account without treating them as unearned trust funds.
C) She billed and received payment for legal services exceeding the flat fee cap permitted under provincial estate planning guidelines.
D) She failed to register the client’s estate planning documents with the Office of the Public Guardian and Trustee before completion.
Correct Answer: B
Explanation: All money retainers for future legal services must be deposited into a trust account. Lawyers may only transfer funds to general once they have issued a bill and the funds are considered earned. Depositing retainers into general prematurely is misappropriation of client funds.
69. Janice accepts a $12,000 cash payment from a business client for services already rendered and issues a general receipt. However, she fails to prepare a duplicate cash receipt and neglects to obtain the client's signature. She argues that the file was closed and she didn’t think it was required.
What cash handling rule did Janice breach?
A) She failed to charge and remit the applicable HST on the cash payment as required under federal tax regulations.
B) She improperly accepted a cash payment exceeding the $7,500 maximum permitted by the Law Society’s anti-money laundering rule.
C) She failed to record the cash transaction in the firm’s fees book and reconcile it against the trust ledger.
D) She failed to prepare and retain a duplicate cash receipt signed by both herself and the client, as required by By-Law 9.
Correct Answer: D
Explanation: Any cash payment received, regardless of whether it is deposited to general or trust, requires a duplicate cash receipt with both parties' signatures. This protects against money laundering and supports transparency. Janice's failure to obtain a signed duplicate is a record-keeping breach.
70. Daniel maintains his trust and general accounts at two separate financial institutions. His trust account provider deducts monthly bank fees directly from the trust account. Daniel is unaware of the deduction until he performs a trust reconciliation and sees the missing amount.
What must Daniel do immediately?
A) He must file a formal requisition with the financial institution requesting reimbursement and updated service terms.
B) He must reimburse the affected client immediately for the deducted amount, regardless of the cause of the withdrawal.
C) He must replace the full amount using firm funds and obtain written confirmation from the bank acknowledging the error.
D) He must notify the Law Society within 30 days and immediately close the trust account with that financial institution.
Correct Answer: C
Explanation: Lawyers must ensure that trust funds are not used to pay bank service fees. If fees are withdrawn from trust in error, the lawyer must replace the amount immediately using firm funds and obtain written confirmation of the bank’s error to document compliance.
71. Liam is retained to structure a real estate development on lands that may be subject to unresolved Aboriginal title claims. The client is eager to proceed with construction, arguing that permits have already been issued by the provincial authority. Liam is aware that the First Nation has not been consulted and that the land lies within a traditional territory under negotiation. The client instructs Liam to remain silent about the Indigenous interest in order to avoid triggering delays. Liam is uncomfortable but fears losing the file.
What is Liam professionally obligated to do?
A) He must advise that construction may proceed as long as valid provincial permits have been issued under applicable planning statutes.
B) He must notify the Ministry of Natural Resources of the potential land claim and allow government agencies to determine next steps.
C) Advise the client that the Crown’s duty to consult may be engaged and that silence could amount to complicity in a breach of the honour of the Crown.
D) He must respect the client’s instruction but create an internal memorandum noting the potential legal risk for future reference.
Correct Answer: C
Explanation: Lawyers must advise clients that legal obligations toward Indigenous peoples, particularly consultation and accommodation, may apply even where statutory permits have been granted. The honour of the Crown must guide dealings involving Aboriginal interests, and solicitors cannot ignore known Indigenous rights to expedite client goals.
72. Julia, an estate planning lawyer, is retained by a Métis client who asks that his will reflect not only legal heirs but also specific cultural practices for gift-giving and spiritual bequests. Julia finds the requests unfamiliar and suggests omitting them, stating “those elements may confuse the court.” The client appears disappointed but complies. The family later disputes the will, arguing it disrespected the testator’s cultural identity.
What ethical misstep did Julia most likely commit?
A) She failed to notarize the clause pertaining to spiritual bequests, resulting in uncertainty regarding testamentary intent.
B) She failed to include a fallback clause addressing intestacy in the event of partial invalidity of the will’s provisions.
C) She failed to file the executed will with the local registry office in accordance with provincial estate law procedures.
D) She failed to respect and meaningfully incorporate Indigenous legal traditions in accordance with the client’s express wishes.
Correct Answer: D
Explanation: Lawyers must respect the cultural context and legal traditions of Indigenous clients. If requested, efforts should be made to reflect Indigenous practices in legal instruments where possible. Dismissing culturally significant elements without discussion disrespects the client’s worldview and undermines reconciliation.
73. A lawyer is preparing a commercial lease for a property near unceded Indigenous territory. The tenant is an energy company planning to extract resources under a provincial license. The landlord instructs the lawyer to insert a clause stating “no Aboriginal rights or claims exist.” The lawyer is aware of a pending land claim but follows the instruction without raising concerns.
What is the lawyer’s professional responsibility?
A) To proceed with the instruction because the existence of a valid provincial license authorizes resource extraction activities.
B) To inform the client that the clause may be inaccurate, potentially misleading, and legally unenforceable given the unresolved land claim.
C) To submit the proposed lease to a provincial Crown agency for clearance and verification before executing the final version.
D) To contact opposing counsel to jointly assess the impact of Indigenous rights on the enforceability of the lease terms.
Correct Answer: B
Explanation: Lawyers must not participate in drafting instruments that misrepresent legal realities. Where Indigenous claims are pending or known, inserting a denial clause could be misleading. The lawyer must explain the implications and advise against provisions that may breach reconciliation principles or legal obligations.
74. Ethan represents a client who wishes to purchase land previously leased to a First Nation for ceremonial use. The lease has expired, but community members continue to use the land for gatherings. The client asks Ethan to serve an eviction notice. Ethan is unsure how to proceed, knowing the historical and cultural importance of the site.
What is Ethan’s best course of action?
A) Advise the client to consider the cultural and spiritual use of the land and explore options such as mediation or accommodation before initiating legal proceedings.
B) Proceed with serving the eviction notice immediately to preserve the client’s full legal rights and control over the property.
C) Serve notice to vacate but extend the compliance period as a courtesy to minimize disruption to community members.
D) File an application for a certificate of possession through Indigenous Services Canada to formalize ownership rights over the parcel.
Correct Answer: A
Explanation: Lawyers should adopt a culturally competent and reconciliation-focused approach when land usage intersects with Indigenous spiritual practices. Before taking adversarial steps, the lawyer should inform the client of potential risks and explore options that honour Indigenous perspectives and values.
75. Nadia is asked to incorporate a not-for-profit foundation that will receive funds from a settlement with an Indigenous group. The client asks her to designate only provincial government representatives as directors to ensure “proper oversight.” Nadia is concerned about the exclusion of Indigenous leadership.
What is Nadia professionally obligated to do in this scenario?
A) She must decline to act and terminate the retainer if the governance proposal raises ethical discomfort.
B) She must advise the client to consider equal representation and encourage a governance model that reflects Indigenous legal traditions and reconciliation principles.
C) She must proceed with incorporating the foundation as instructed, treating governance as a private matter for the client to determine.
D) She must report the client’s governance decision to the Ministry of Indigenous Relations and Reconciliation for regulatory monitoring.
Correct Answer: B
Explanation: Lawyers must promote inclusion and reconciliation, especially in matters involving Indigenous communities. Excluding Indigenous voices from governance related to their own settlements is ethically problematic. Lawyers should advise clients to ensure participation reflects principles of reconciliation and partnership.
76. Sahil is approached by two siblings who want to jointly purchase a property and have Sahil act for both. He explains the implications of a joint retainer and confirms that each will contribute 50% of the purchase price. Days before closing, one sibling tells Sahil that she has contributed 100% of the down payment and wants the property registered solely in her name. Sahil follows her instructions without informing the other sibling.
What professionalism rule has Sahil violated?
A) Sahil failed to disclose his fees in advance.
B) Sahil failed to preserve solicitor-client privilege.
C) Sahil failed to comply with the obligations of a joint retainer.
D) Sahil failed to report the ownership discrepancy to the lender.
Correct Answer: C
Explanation: In a joint retainer, information provided by one client must be shared with the other. The lawyer must treat both clients equally and cannot accept instructions from one that affect the rights of the other without disclosure and consent. Proceeding unilaterally is a breach of duty.
77. A lawyer represents a company in an ongoing commercial lease negotiation. Simultaneously, the lawyer accepts a new retainer from a former employee of that company to review a severance agreement. While the matters are unrelated, the lawyer had access to confidential HR policies during the lease discussions.
What rule most directly applies?
A) The lawyer must obtain permission from the court before accepting a second retainer involving a former client’s employee.
B) The lawyer cannot act against a former client where confidential information may be relevant.
C) The lawyer must send a conflict waiver letter to the client’s human resources department for signature before proceeding.
D) The lawyer may proceed only if the matters are both under $25,000 in value.
Correct Answer: B
Explanation: When a lawyer receives confidential information in one matter, they are prohibited from acting against that former client in a related or even unrelated matter if the confidential information could be relevant. Even if unintentional, misuse or disclosure of such information can cause material prejudice and result in a conflict.
78. Isabelle is asked to step in as successor counsel for a business client whose previous lawyer withdrew due to non-payment. Isabelle receives a message from the former lawyer’s office asserting a solicitor’s lien and demanding full payment before releasing the file. The client is concerned about delays and asks Isabelle to proceed anyway.
What is Isabelle’s professional obligation in this scenario?
A) She must personally satisfy the unpaid fees in trust before accepting the file and continuing the representation.
B) She may disregard the solicitor’s lien because the former lawyer withdrew voluntarily and waived further participation.
C) She must take reasonable steps to help the client address the lien and attempt to minimize legal prejudice resulting from the delay.
D) She must seek a formal court order authorizing the transfer of the file regardless of the client’s financial position or urgency.
Correct Answer: C
Explanation: A successor lawyer must assist the client in resolving disputes with the former lawyer, particularly where a lien has been asserted. The priority is to minimize delay and prejudice to the client, not to escalate the dispute over unpaid fees.
79. Zahra is cross-examining an adverse witness in a corporate dispute. She is unsure whether the tribunal permits counsel to speak with their witnesses between stages of examination. Nonetheless, she takes the witness aside during a recess to discuss strategy and refresh memory.
What rule governs Zahra’s conduct?
A) Counsel may confer with their witness at any point unless cross-examination has formally commenced on the record.
B) Counsel must seek leave or avoid mid-testimony contact with their own witness unless permitted by the tribunal.
C) Counsel must have another lawyer present during any recess discussion.
D) Counsel may engage in strategic discussions with a witness during adjournments so long as the witness is represented or previously prepared.
Correct Answer: B
Explanation: Once a lawyer’s own witness begins testifying, communications must be limited, and strategy discussions are generally prohibited between stages of testimony unless expressly permitted by the tribunal. Zahra’s conduct risks influencing the witness and undermining tribunal integrity.
80. Paul is retained on a $15,000 retainer to advise on a business purchase. He deposits the funds to trust, issues multiple bills, and makes corresponding transfers to general. However, he skips recording these transactions in the trust receipts and disbursements journals, assuming his bank statements are sufficient.
What professional failure has Paul committed?
A) He failed to keep contemporaneous and complete financial records as required under By-Law 9.
B) He failed to utilize Law Society-approved electronic fund transfer software when making multiple trust-to-general transfers.
C) He failed to submit an application for a limited-purpose HST exemption on legal fees related to the commercial transaction.
D) He failed to issue receipts with cheque numbers.
Correct Answer: A
Explanation: Lawyers must maintain full and up-to-date trust receipts, disbursements, and client trust ledgers. Bank statements are not a substitute for internal journals. Accurate and timely record-keeping is essential to meet fiduciary and compliance obligations.