What must a lawyer do before entering a business transaction with a client?

Before entering into a business transaction with a client, a lawyer is required to fully disclose the terms of the transaction clearly and provide the client with a reasonable opportunity to seek independent legal advice. This obligation serves several critical purposes.

Firstly, it ensures that the client understands the potential conflicts of interest that could arise because of the relationship between the lawyer and the client. By fully disclosing the terms, the lawyer respects the client's autonomy and promotes informed decision-making. This transparency enables the client to grasp the implications of the transaction and assess their own interests adequately.

Secondly, offering the opportunity for independent legal advice is crucial in maintaining ethical standards and protecting the client’s interests. It allows the client to consult with another legal professional who can provide impartial advice, ensuring that the client is fully informed and that their rights are protected. This step is particularly important in situations where the client may not feel comfortable asking questions or seeking clarification from their own lawyer, who is also a party to the transaction.

The other options fall short of the ethical requirements outlined by the Model Rules of Professional Conduct. They do not consider the necessity for transparency and informed consent, which are essential in maintaining the integrity of the attorney-client relationship and the trust placed in legal professionals.