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Multiple Choice

Under MR, what is the appropriate action when a lawyer becomes aware of third-party payments that create a conflict within the organization?

When a lawyer represents an organization and becomes aware that third‑party payments could create a conflict, the duty is to address it through the organization first. The appropriate course is to inform the highest authority within the organization so they can assess and correct the situation. If those in charge fail to act, the lawyer may, after providing notice, report the matter to outside authorities as permitted to prevent ongoing wrongdoing or to comply with legal or ethical obligations. This internal-first approach protects the organization and preserves the option of external action if internal remedies are not pursued. Merely informing the client or doing nothing, or resigning, would not adequately address the conflict or safeguard the organization and the public.

When a lawyer represents an organization and becomes aware that third‑party payments could create a conflict, the duty is to address it through the organization first. The appropriate course is to inform the highest authority within the organization so they can assess and correct the situation. If those in charge fail to act, the lawyer may, after providing notice, report the matter to outside authorities as permitted to prevent ongoing wrongdoing or to comply with legal or ethical obligations. This internal-first approach protects the organization and preserves the option of external action if internal remedies are not pursued. Merely informing the client or doing nothing, or resigning, would not adequately address the conflict or safeguard the organization and the public.