Question 1 2009
Betty formed and became president and sole shareholder of a startup company,    
ABC, Inc. (―ABC‖), which sells a daily on-line calendaring service.  ABC retained
Lucy, a lawyer, to advise it about a new trademark.
As ABC was very short on cash, Lucy orally proposed that, in lieu of receiving
her usual $200 per hour fee, she could become a 1% owner of ABC.  On behalf
of ABC Betty orally agreed.  Lucy performed 20 hours of legal work and received
her ABC stock shares.  Years later, Lucy would sell her shares back to Betty for
$40,000.
While Lucy was performing legal services for ABC, she discovered certain
representations by ABC that were false and misleading and caused customers to
pay for services they would never receive.  She reported her discovery to Betty,
who told her to ignore what she had found.  After Lucy finished her legal work for
ABC, she reported the false and misleading representations to a state consumer
protection agency.
Betty sold all of her interest in ABC, including the shares previously held by Lucy,
and formed and became president and sole shareholder of another startup
company, XYZ, Inc. (―XYZ‖).
After Lucy had finished her work for ABC and closed that file, she was retained
by a new client, Donna, in a trademark dispute with XYZ.
What ethical violations, if any, has Lucy committed?  Discuss.
Answer according to California and ABA authorities.


Question 2 (five) 2012 feb
Attorney mailed  a  professional  announcement  to  several  local  physicians,  listing  his
name  and  address  and  his  area  of  law  practice  as  personal  injury.  Doctor received
Attorney’s  announcement  and  recommended  that  her  patient,  Peter,  call  Attorney.
Peter had become very ill; he thought the cause was breathing fumes from a chemical
company near his home.
Attorney  agreed  to  represent  Peter  in  a  lawsuit  against  the  chemical  company.  At
Attorney’s request, Doctor agreed to testify as an expert witness on Peter’s behalf at the
trial.  Attorney  advanced  Doctor  expert  witness  fees  of  $200  an  hour  for  her  time
attending depositions, preparing for trial, and testifying.
Attorney  learned  in  discovery  that  numerous  scientific  studies  had  failed  to  find  any
medical risks from the chemical company’s fumes.  Doctor was nevertheless willing to
testify,  on  the  basis  of  her  clinical  experience,  that  the  fumes  had  harmed  Peter.
Attorney  did  not  know  whether  Doctor’s  testimony  was  true  or  false.  He  offered
Doctor’s testimony at trial, and Peter won a judgment.
After the trial, Attorney sent a $500 gift certificate to Doctor, with a note thanking her for
recommending that Peter call him.
What, if any, ethical violations has Attorney committed?  Discuss.
Answer according to California and ABA authorities.