Deck 6: Legal Fees

Question 1

Multiple use documents are

A)prepared in very little time
B)considered a soft cost
C)used in a number of cases
D)none of the above
E)all of the above

Answer 1

E

Question 2

A true retainer fee is refundable to the client.

Answer 2

False

Question 3

Paralegals should not quote fees because

A)they do not have the requisite training to identify issues and problems of a case
B)it is not an effective use of their time
C)it is not in their job description
D)quoting fees is one of their duties
E)none of the above

Answer 3

A

Question 4

Lodestar

A)originated in the Third Circuit Court of Appeals
B)contains the eight factors of reasonableness
C)is a method of calculating a reasonable attorney's fee
D)b and c only
E)all of the above

Question 5

Contingency fees are paid

A)automatically on the date of trial
B)upon submission of an invoice
C)bimonthly
D)when the client retains the firm
E)at the end of the case

Question 6

A task-based fee is

A)based on the amount of recovery
B)based on the complexity of the task
C)paid after the trial of the matter
D)paid to the attorneys only
E)none of the above

Question 7

A firm's fee structure must maximize profitability.

Question 8

When determining a reasonable fee,which of the following is/are considered?

A)time required to complete the case
B)specialty of the attorney
C)the amount of the attorney's overhead
D)none of the above
E)all of the above

Question 9

What type of case may be taken on a contingency basis?

A)tort
B)domestic
C)contract
D)probate
E)criminal

Question 10

A lawyer may not share legal fees with a nonlawyer except

A)when a paralegal works overtime on a case
B)when paid to a profit sharing plan
C)when a paralegal refers a client to the firm
D)when paid to a consultant on the case
E)none of the above

Question 11

Blended hourly rates encourage the use of paralegals.

Question 12

Why do some firms prefer a fee structure other than an hourly rate?

A)corporate clients are demanding it
B)an hourly rate is too difficult to calculate
C)an hourly rate does not compensate the firm for an attorney's expertise
D)all firms charge an hourly rate
E)all firms use an alternative fee structure

Question 13

Corporate legal departments prefer task-based fees because they can

A)budget for legal costs
B)estimate how much an entire case should cost
C)compare outside counsels' invoices
D)all of the above
E)none of the above
196

Question 14

Which of the following retainer fees are paid to ensure the attorney's availability?

A)true
B)nonrefundable chargeable
C)nonrefundable nonchargeable
D)refundable
E)a and b only

Question 15

A modified contingency fee is

A)based upon the amount of the recovery
B)based upon the difference of the amount at issue and the amount of the recovery
C)paid before the case begins
D)considered a premium fee
E)none of the above

Question 16

An attorney's fee award may include costs of paralegal services if

A)the amount of time is reasonable
B)the paralegal was supervised by the attorney
C)the paralegal is qualified
D)the paralegal did paralegal work
E)all of the above

Question 17

Gratuitous referral fees are

A)prohibited by most states
B)paid at the end of the case
C)difficult to obtain
D)a and b only
E)all of the above

Question 18

Hourly rates vary according to specialty.

Question 19

Soft costs do not include

A)photocopies
B)filing fees
C)housekeeping services
D)charges for long distance telephone call
E)supplies

Question 20

A contingency fee is the most common fee charged.

Question 21

Statutory fees are set by .

Question 22

There are no limits on contingency fees.

Question 23

The two types of flat fees are and .

Question 24

In most states,an attorney may not share fees with another attorney unless the other attorney did some work on the case.

Question 25

The four considerations of taking a contingency case are RISC) ,
,,and .

Question 26

The factors of a reasonable fee include the size of the law office.

Question 27

A multiplier compensates an attorney for time limitations and risk factors.

Question 28

Fee splitting discourages capping activities.

Question 29

A client will receive more money if the attorney's fee is calculated by the gross fee method in a contingency case.

Question 30

A flat fee is established by applying a timekeeper's to the number of hours a case is expected to take.

Question 31

Law firms charge for travel time because it takes time away from other billable work.

Question 32

The client's ability to pay is considered when determining hourly rates.

Question 33

In some areas,fees are the only acceptable method of charging clients.

Question 34

Blended hourly rates are .

Question 35

Premium fees are like "tips" for a job well done.

Question 36

A fee is charging an hourly rate along with a contingency fee.

Question 37

An attorney may charge an) flat fee for each day worked.

Question 38

A lawyer may not place a retaining lien on property received in an unrelated case.

Question 39

What are the four types of retainer fees? ,,
,and .

Question 40

In which account are refundable chargeable retainer fees deposited?
.

Question 41

A fee is charged based on the value of the service to the client.

Question 42

costs are also called direct costs.

Question 43

A lien that is placed on a client's property is called an) lien.

Question 44

The requirement that a fee agreement be in writing is to prevent .

Question 45

A lien that is placed on a judgment is called an) lien.