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A lawyer licensed in State One represented a State One promoter who put together a limited partnership in State Two. The limited partnership included properties
A lawyer licensed in State One represented a State One promoter who put together a limited partnership in State Two. The limited partnership included properties from State Two and the majority of the investors were residents of State Two. The lawyer associated with local counsel in State Two for the local law issues. In the limited partnership agreement, the lawyer included a provision that stated, "The parties agree that State Three's ethics rules will govern the transaction. The investors to this partnership are encouraged to seek independent advice of counsel in evaluating whether to accept this provision." This provision was included because State Three's ethics rules are more favorable to the promoter's interests, and the lawyer explained this to the investors. But the lawyer did not detail how such rules might impact the investor's interests. Was it proper for the lawyer to include this choice of professional responsibility clause in the partnership agreement? Group of answer choices Yes, because the promoter as the initiator of the partnership transaction has the right to control which state's ethics rules apply. No, because the lawyer failed to provide details as to how State Three's ethics rules might impact the investor's interests. No, because State Three had no relationship to the transaction. Yes, because the lawyer disclosed the reason why the promoter included this provision and warned the investors to obtain independent counsel
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