Ontario Barrister and Solicitor Practice Exam

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What should a lawyer do upon discovering a potential conflict of interest due to a beneficiary's relationship?

Advise the beneficiary directly
Ignore the potential conflict
Consult with another lawyer in the firm
Inform the client and determine how to proceed

The correct answer is: Inform the client and determine how to proceed

A lawyer should always act in the best interest of their client. Upon discovering a potential conflict of interest, they should inform their client and determine the best course of action to avoid any ethical or legal issues. Option A is incorrect because a lawyer should not directly advise a potential conflict of interest beneficiary as it may compromise their relationship with the client. Option B is incorrect because it goes against ethical guidelines and may result in legal consequences for the lawyer. Option C is incorrect because consulting with another lawyer in the firm does not address the potential conflict of interest and may not eliminate the risk entirely. Therefore, Option D is the best course of action for a lawyer to take in this situation.