Question

An attorney must not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security, or other pecuniary interest adverse to a client unless:

A) The transaction and terms are fair and reasonable to the client and are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client.

B) The client provides verbal consent during a meeting or conversation.

C) The attorney obtains permission from the attorney's professional association.

D) The attorney believes the transaction is in their best interest without considering the client's position.

Answer 1

An attorney must prioritize the client's interest and avoid conflicts of interest in business dealings, in compliance with legal and ethical standards. The right to an attorney is protected under the Sixth Amendment, which also dictates fairness and disclosure in attorney-client transactions. The Principle of Justice in acquisition and transfer must be adhered to, ensuring that the attorney does not act as a judge in their own cause.

Step-by-step explanation:

An attorney's role is to provide legal counsel to their clients with impartiality and without conflict of interest. The American legal system stipulates that an attorney must not engage in a business transaction with a client or acquire any interest in conflict with the client unless the transaction is fair and fully disclosed. This ethical obligation is underpinned by the right to an attorney, a fundamental provision of the Sixth Amendment, as highlighted by landmark cases such as Glasser v. United States and Strickland v. Washington.

Additionally, the attorney must consider the Principle of Justice in acquisition and transfer, ensuring the dealings are just and consensual. It's the attorney's duty to prioritize their client's best interest, and any business dealing or contract must be entered into without exploiting the attorney-client relationship or leveraging it for personal gain.

Considering the sensitive nature of the attorney-client relationship, transactions between the two must be approached with utmost care, avoiding circumstances where the attorney may appear to be a judge in their own cause, as suggested by the concept that no man is allowed to be a judge in his own cause. Professional conduct requires the avoidance of self-interest if it's adverse to a client's interest.