Paralegal Advanced Competency Exam (PACE) Practice Exam

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Study for the Paralegal Advanced Competency Exam (PACE). Utilize flashcards and multiple-choice questions designed to enhance your knowledge of paralegal standards and competencies. Prepare effectively and increase your chances of passing!

Practice this question and more.

Which example reflects an ethical issue related to fee splitting?

Sharing fees with non-lawyers
Dividing fees between lawyers within the same firm
Discussing fees openly with clients
Charging for consultations

The correct answer is: Sharing fees with non-lawyers

The example of sharing fees with non-lawyers clearly reflects an ethical issue related to fee splitting because it violates professional conduct rules that prohibit attorneys from paying or receiving referral fees, or sharing legal fees with individuals who are not licensed to practice law. This prohibition exists to maintain the integrity of the legal profession and prevent situations that may compromise the lawyer’s independent judgment. Allowing non-lawyers to receive a part of a lawyer's fees can also lead to situations where non-lawyers exert undue influence over the legal advice provided to clients, creating conflicts of interest and undermining the attorney-client relationship. This issue is distinct from the other options, as dividing fees between lawyers within the same firm (while adhering to certain rules and proper disclosures) is typically permitted, as long as it complies with ethical guidelines. Discussing fees openly with clients is a standard practice that fosters transparency and trust in the attorney-client relationship. Charging for consultations is a common practice among lawyers and does not inherently present an ethical concern. Thus, only sharing fees with non-lawyers directly raises ethical concerns about the practice of law and the standards to which attorneys are held.