Certified Legal Professional (CLP) Practice Exam

Does the attorney have an ethical duty to caution the client against the decision to become a day trader?

1. Yes, because a lawyer has a duty to offer sound advice

2. Yes, if the attorney suspects that the client may lose money

3. No, because the attorney cannot make decisions for the client

4. No, because the client did not solicit advice

The correct answer is: No, because the client did not solicit advice

The correct choice revolves around the understanding of the attorney-client relationship and the scope of an attorney's ethical duties. While attorneys have an obligation to provide competent representation and sound legal advice, they are not psychologists or financial advisors unless specifically retained in such roles. When a client decides to engage in activities such as day trading without soliciting advice or direction from their attorney, the attorney may not have an ethical duty to intervene or caution against that decision. This understanding underscores the principle that clients retain agency over their financial decisions and actions. If a client did not ask for advice on becoming a day trader, the attorney is not ethically obligated to provide it, as it falls outside the scope of the legal representation agreed upon. Thus, unless the attorney has been engaged in a role specifically involving financial advice or if the client's choice raises legal issues that require guidance, the client’s unilateral decisions do not automatically invoke a duty for the attorney to caution or interfere.