Certified Legal Professional (CLP) Practice Exam

In the context of settlement negotiations, what is the attorney's obligation when a client has set a clear minimum acceptable offer?

1. To advise the opposing party of the client's bottom line.

2. To reject any offer below the specified amount.

3. To negotiate on behalf of the client without limits.

4. To consult the client again before any decisions are made.

The correct answer is: To reject any offer below the specified amount.

In settlement negotiations, when a client has established a clear minimum acceptable offer, the attorney's primary obligation is to honor that limit. By rejecting any offer that falls below this specified amount, the attorney demonstrates fidelity to the client's interests and preferences. This clear boundary allows the attorney to advocate effectively and maintain the integrity of the client's negotiation strategy. Adhering to the client's minimum ensures that the negotiations remain aligned with the client’s expectations and financial needs. It empowers the attorney to engage in discussions while maintaining a strong position that reflects the client's desires. While it is also essential for the attorney to communicate and negotiate, any offer that is below the client's minimum would not meet the client's requirements and could potentially compromise their goals in the negotiation process. Engaging in any negotiations without respect to this minimum could lead to outcomes that do not serve the client's interests, making it essential for the attorney to uphold the client's established parameters throughout the negotiation process. This sets the groundwork for effective advocacy and reinforces the client-attorney relationship based on trust and communication.