A situation where a conflict may arise in the future, such as representing business partners, is called what?

A situation where a conflict may arise in the future, such as representing business partners, is called what?

• A. Vicarious representation
• B. Ethical wall or screen
• C. Potential conflict
• D. Confidentiality

Answer: (C)

A potential conflict of interest is when a conflict could arise later in the representation, even though nothing adverse is happening right now. When two business partners might have to make decisions that clash in the future, the attorney could face competing duties to each partner. This is different from an actual, present conflict and often requires careful screening, disclosure to the clients, and sometimes informed written consent or choosing not to represent the matter to avoid compromising loyalty and confidentiality. The other terms don’t fit this idea: an ethical wall or screen is a method to handle conflicts, confidentiality is about protecting information, and vicarious representation isn’t the term for this risk.

A potential conflict of interest is when a conflict could arise later in the representation, even though nothing adverse is happening right now. When two business partners might have to make decisions that clash in the future, the attorney could face competing duties to each partner. This is different from an actual, present conflict and often requires careful screening, disclosure to the clients, and sometimes informed written consent or choosing not to represent the matter to avoid compromising loyalty and confidentiality. The other terms don’t fit this idea: an ethical wall or screen is a method to handle conflicts, confidentiality is about protecting information, and vicarious representation isn’t the term for this risk.