Deck 1: Managing Your Legal Affairs

Question 1

When searching online for legal information, it is best to

A) use American sources, as they tend to be more comprehensive than Canadian ones.
B) seek advice from a lawyer when answers cannot be readily found.
C) gauge the accuracy of the information by the look of the website.
D) never trust the information found on a website.
E) trust that if it is published online, it must be accurate.

Answer 1

B

Question 2

Becoming a sophisticated client will

A) relieve a business person from having to conduct legal research.
B) ensure that a business person never needs a lawyer.
C) help a business person manage her legal affairs more efficiently and effectively.
D) result in a business person developing a bias against lawyers.
E) protect a business person from needing legal advice.

Answer 2

C

Question 3

Which of the following best describes the role of the lawyer?

A) The lawyer makes the legal decisions for the client.
B) The lawyer is simply one of the experts the businessperson consults.
C) The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters.
D) The client must follow the lawyer's instructions, as long as they are lawful.
E) The client makes decisions regarding civil matters; the lawyer makes decisions regarding criminal matters.

Answer 3

B

Question 4

William Shakespeare's Henry VI, Part II includes the line "The first thing we do, let's kill all the lawyers." The president of the Canadian Bar Association interpreted this quotation as

A) a lawyer-bashing joke.
B) a humorous attempt to embarrass lawyers everywhere.
C) a threat to all members of the legal profession.
D) an offence meriting severe legal consequences.
E) a comment on the importance of the "rule of law".

Question 5

For sophisticated clients, the availability of an abundance of legal information online is

A) a negative development, because online information is rarely accurate or helpful.
B) a neutral development, because lawyers are still the only ones able to access this information.
C) a positive development, because it means that they will no longer need to retain lawyers as part of their team.
D) a negative development, because accessing this information tends to be more costly than retaining a lawyer.
E) a positive development, because it provides greater access to information they can use as part of their decision-making process.

Question 6

Sophisticated clients

A) tend to be embarrassed to request legal advice.
B) know that it is better to hire a lawyer than to conduct research on one's own.
C) do not need to retain a lawyer.
D) have the skill and confidence to find basic legal information.
E) are willing to pay for legal advice at any cost.

Question 7

The role of the lawyer is to

A) tell their clients what they must do.
B) tell their clients what they must not do.
C) provide legal advice relevant to the client's situation, which the client has no choice but to follow.
D) delay the client's decision-making process.
E) provide legal advice relevant to the client's situation, which the client is free to ignore.

Question 8

When someone refers you to a particular lawyer, you should

A) ensure the referral is from a family member, rather than a mere friend.
B) ensure the referral is being given by someone you trust.
C) ignore the referral as irrelevant.
D) retain the lawyer regardless of who gave you the referral.
E) retain the lawyer regardless of their area of practice.

Question 9

The decision to enter into the lawyer-client relationship should be

A) a mutual decision made primarily on the basis of trust.
B) made primarily on the basis of cost.
C) solely up to the lawyer, as he or she is the one with the legal training.
D) made quickly to ensure that no one else can retain your lawyer.
E) solely up the client, as he or she is the one paying for the services.

Question 10

Which of the following is NOT a good reason for a business person to seek advice from a lawyer?

A) The businessperson cannot find the necessary legal information.
B) The businessperson is facing criminal charges.
C) The necessary legal information is available online.
D) It would take too long for the businessperson to find the necessary legal information.
E) The businessperson cannot understand the necessary legal information.

Question 11

Which of the following best describes the likelihood of a student becoming involved in a situation necessitating legal advice?

A) Legal advice is not available to students.
B) Because students cannot be sophisticated, they will often become involved in such situations.
C) A student, or someone close to the student, will always become involved in such a situation
D) Because students are not business people, they never become involved in such situations.
E) A student, or someone close to a student, sometimes becomes involved in such a situation.

Question 12

Having a good lawyer on your team is

A) a critical component of being a sophisticated client.
B) only necessary for large companies.
C) usually too expensive to be worthwhile.
D) a legal requirement prior to incorporating a business.
E) a good alternative to becoming a sophisticated client.

Question 13

In the context of a sophisticated client, "sophisticated" can best be defined as

A) simple and naïve.
B) complicated, self-reliant, and cosmopolitan.
C) confident, knowledgeable, and up-to-date.
D) aggressive, dynamic, and forceful.
E) refined and cultured.

Question 14

When setting up a small business, the best approach to follow is to assume that after the business has been set up and commences operating

A) the lawyer you chose to assist you in the start-up of the business will refer you to a different lawyer.
B) the lawyer you chose to assist you in the start-up of the business will provide free legal services for the duration of the business's operation.
C) you will not need legal advice, as long as you are a sophisticated client.
D) the lawyer you chose to assist you in the start-up of the business will continue to represent you.
E) a lawyer will no longer be required.

Question 15

Which of the following statements best describes solicitor-client privilege?

A) The lawyer must follow the client's instructions, even if they are illegal in nature.
B) The lawyer makes the legal decisions for the client.
C) The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters.
D) Refers to the duty of the lawyer to keep the information provided by the client confidential.
E) The lawyer is the only expert a client should consult.

Question 16

A sophisticated client

A) does not require the services of a lawyer.
B) should represent themselves, rather than paying for legal services.
C) is someone with formal legal training.
D) understands the importance of the solicitor-client relationship.
E) distrusts and derides lawyers.

Question 17

Raman is a sophisticated client. This means that she

A) will probably never find herself in a situation necessitating legal advice.
B) understands how to manage a lawyer-client relationship.
C) is a small business owner.
D) has a law degree.
E) manages her legal affairs without assistance from a lawyer.

Question 18

The primary purpose of an initial consultation with a lawyer is

A) for the prospective lawyer to help mediate the current dispute.
B) to arrange payment of the lawyer's fees up front.
C) for the prospective client to decide whether to retain the lawyer.
D) to discuss the availability of Legal Aid.
E) to develop strategies for dealing with the legal situation in question.

Question 19

One reason for the general lack of respect for lawyers is that

A) lawyers are not bound by a Code of Professional Conduct.
B) lawyers are rarely able to provide information or advice relevant to business matters.
C) lawyers who breach their duties are generally not subject to any punishment.
D) many people do not understand the role of the lawyer in the solicitor-client relationship.
E) the cost of legal advice generally outweighs its benefit.

Question 20

Which of the following is NOT an advantage to maintaining an ongoing relationship with your lawyer?

A) The lawyer will view you as her client, giving you and your requests priority.
B) The lawyer will know and understand you and your business.
C) The lawyer will be able to provide legal advice more efficiently, thereby reducing your legal costs.
D) The lawyer will automatically track your business activities, so that he or she can provide constant advice and guidance.
E) The lawyer will be able to customize his or her legal advice, so it will be even more useful to you.

Question 21

A retainer

A) is the amount a lawyer will receive when charging based on a contingency fee agreement.
B) refers to the costs incurred by a lawyer on a client's behalf.
C) is the amount a client must pay that is in addition to regular legal fees and disbursements.
D) works as a deposit.
E) works to secure the release of an arrested person.

Question 22

Provincial law societies

A) are non-profit law firms offering a range of legal services.
B) provide compensation to clients who are unhappy with legal services.
C) deal with complaints regarding a lawyer's conduct.
D) exist primarily to assist clients with complaints concerning fees.
E) guarantee success in litigation matters.

Question 23

Which of the following statements is true?

A) Lawyers should always be retained, regardless of the cost.
B) It is a popular misconception that legal services can be very costly.
C) All lawyers bill clients on an hourly basis.
D) It is considered unprofessional to raise the issue of fees during a consultation with a lawyer.
E) Some people don't retain lawyers even when they need them because they are afraid of the cost.

Question 24

Duty counsel are

A) legal assistants who offer legal services at rates significantly lower than those charged by lawyers.
B) law students who are fulfilling requirements established by a provincial law society.
C) retired lawyers and judges who volunteer through legal aid societies.
D) non-lawyers who provide advice to those in financial need.
E) court lawyers who assist individuals who are not represented by a lawyer.

Question 25

Legal fees

A) should not be discussed with a lawyer until a bill has been prepared.
B) are typically negligible.
C) are rarely the subject of confusion or misunderstanding.
D) should be discussed during the initial consultation with the lawyer.
E) are always calculated in a single, specified way.

Question 26

A small business owner

A) is usually not able to receive legal aid with respect to the legal issues involving the business.
B) is wise to obtain legal aid for its business matters, rather than having to incur legal costs.
C) should retain duty counsel to draft contracts outlining legal duties.
D) is automatically entitled to legal aid assistance.
E) should always use duty counsel, rather than having to retain a lawyer.

Question 27

Legal aid is

A) universally available, regardless of subject matter or financial need.
B) available to anyone who can demonstrate financial need, regardless of subject matter.
C) available subject to substantive and financial eligibility requirements.
D) only available for business law issues.
E) available exclusively for criminal law issues, subject to demonstrated financial need.

Question 28

If you collect money as a result of a settlement or judgment obtained through the assistance of legal aid, you will

A) be required to turn the amount of the settlement or judgment over to the court.
B) probably be ineligible to enforce the settlement or judgment if the debtor refuses to pay.
C) probably have to repay some or all of the legal aid benefits you received.
D) probably be able to keep the full amount of the settlement of judgment.
E) be required to turn the amount of the settlement or judgment over to legal aid.

Question 29

Which of the following statements regarding retainers is false?

A) The lawyer may require the client to "top up" the retainer as funds are withdrawn from the trust account.
B) A retainer is deposited into a trust account, to the credit of the client.
C) Provincial law societies typically restrict the use of retainers to personal injury or product liability cases.
D) A retainer helps ensure that a lawyer will be paid for his or her legal services.
E) Before commencing work on a matter, a lawyer usually requests that a retainer be paid.

Question 30

Duty counsel are typically available

A) in superior court bankruptcy matters.
B) for commercial litigation.
C) in criminal courts, family courts, or immigration courts.
D) for small claims and real estate disputes.
E) to review and draft a variety of contracts.

Question 31

A lawyer referral service

A) is an online fee-based service providing guaranteed results.
B) is also known as "Legal Aid".
C) regulates the legal profession in the interest of the public.
D) provides the names and phone numbers of lawyers who practice in a particular area of law.
E) will enable a businessperson to retain a lawyer without need for an initial consultation.

Question 32

A provincial law society

A) has as its mandate the provision of free legal services, in the public interest.
B) operates primarily to offer low-cost legal advice to members.
C) is a self-governing body for lawyers.
D) is a self-governing body for businesspeople seeking legal advice.
E) operates primarily to enhance the commercial interests of its members.

Question 33

Which of the following statements regarding duty counsel is accurate?

A) Duty counsel are available to assist in a wide range of business law issues.
B) There is an advantage to using duty counsel rather than retaining one's own lawyer.
C) There is a lengthy application process to obtain duty counsel.
D) Duty counsel can provide limited assistance in certain court matters.
E) Duty counsel typically take on your entire case and represent you at trial.

Question 34

Which of the following statements regarding provincial law societies is false?

A) Provincial law societies may restrict the use of contingency fee agreements.
B) Provincial law societies provide online information on lawyers' fees.
C) Provincial law societies may set maximum contingency fees for certain types of cases.
D) Provincial law societies provide free legal services to people in need.
E) Provincial law societies may offer a fee mediation service.

Question 35

The Canadian Bar Association is

A) a professional organization that represents judges and lawyers.
B) a disciplinary body for members of the legal profession.
C) focused on enhancing public safety in the liquor distribution industry.
D) the national society for legal aid services.
E) an organization responsible for reviewing lawyers' accounts.

Question 36

Typically, lawyers bill on the basis of which of the following?

A) A fixed fee, a stipend, or a pro rata distribution.
B) A fixed fee, an hourly rate, or a contingency fee.
C) A fixed fee, a pro rata distribution, or a contingency fee.
D) A stipend, a pro rate distribution, or an hourly rate.
E) A stipend, an hourly rate, or a contingency fee.

Question 37

The BC Legal Services Society may pay for a lawyer for a low-income client if the client has a legal problem involving any of the following except

A) mental health or prison issues.
B) criminal charges.
C) commercial litigation.
D) immigration problems.
E) serious family problems.

Question 38

Which of the following statements is most accurate?

A) If you qualify for legal aid, you will automatically be exempt from all legal costs.
B) Everyone qualifies for legal aid.
C) If you have a legal problem and cannot afford a lawyer, one will be provided for you.
D) Everyone can afford a lawyer.
E) If you have a legal problem and cannot afford a lawyer, you may be eligible for legal aid.

Question 39

Legal Aid Ontario will NOT cover any of the following except

A) criminal matters.
B) wrongful dismissal.
C) change of name.
D) defamation.
E) personal bankruptcy.

Question 40

Contingency fee agreements

A) must be prepared for all lawyer-client relationships.
B) are synonymous with retainer agreements.
C) may result in a lawyer not receiving any legal fees for the work done on a file.
D) are not subject to any restrictions.
E) are typically used for real estate purchases, the drafting of wills, and incorporations.

Question 41

Which of the following does NOT represent a core ethical value identified by the Josephson Institute for Ethics?

A) Caring
B) Fairness
C) Respect
D) Courage
E) Citizenship

Question 42

You can enhance the success of your business by

A) not seeking legal advice in cases where your conduct may be questionable, as you will then be bound by the lawyer's code of professional conduct.
B) incorporating core values into a code of conduct, regardless of whether or not you adopt those values personally.
C) personally adopting core values and incorporating them into a code of conduct for the business.
D) relying on the Canadian Code of Professional Conduct for Businesspeople.
E) retaining a lawyer who is willing to engage in unethical conduct on your behalf.

Question 43

If you have a complaint about the fees being charged by your lawyer

A) you can have your bill reviewed by a court official.
B) you must participate in a fee mediation service.
C) your provincial law society represents your only course of action.
D) you should not discuss your concerns with your lawyer directly.
E) you should begin by commencing a court action.

Question 44

According to the Josephson Institute for Ethics, the core ethical value of trustworthiness has as its supporting ethical principles

A) citizenship, philanthropy, voting.
B) justice, fairness, impartiality, equity.
C) respect, autonomy, courtesy, self-determination.
D) truthfulness, sincerity, candor, integrity, promise keeping, loyalty, honesty.
E) caring, kindness, compassion.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

Question 45

Which of the following statements best describes the difference between law and ethics?

A) Law tells us what we must do; ethics tells us what we should do.
B) Law and ethics are interchangeable.
C) Ethics tells us what we must do; law tells us what we should do.
D) A person need not worry about acting legally, as long as she acts ethically.
E) If a person acts unethically, he has broken the law.

Question 46

The Canadian "Code of Professional Conduct" for business people

A) was created by the provincial business society.
B) has been used to prosecute a number of high-profile cases.
C) establishes the professional and ethical obligations of businesspeople.
D) is the same as the lawyers' code of conduct.
E) does not exist.

Question 47

Sophisticated clients who are starting a business should

A) opt not to prepare a code of conduct, because of potential liability exposure in the event of a breach.
B) only concern themselves with ethical behaviour that is required by law.
C) make a commitment to ethical behaviour and prepare a statement of values.
D) refrain from reporting illegal or unethical behaviour.
E) consult a lawyer about how to engage in unethical behaviour undetected.

Question 48

Fee mediation

A) is compulsory whenever a client raises a concern about a lawyer's bill.
B) involves a review of a lawyer's bill by a court official.
C) is offered by every provincial law society as the primary means of dispute resolution for complaints regarding lawyers' fees.
D) involves a neutral mediator who tries to facilitate a mutually acceptable resolution of a dispute over fees charged by a lawyer.
E) involves a judge who determines whether or not a lawyer's bill is reasonable.

Question 49

If you cannot resolve a fee dispute with your lawyer, you should

A) sue your lawyer for non-payment.
B) make a formal complaint to the bar association.
C) refuse payment on ethical grounds.
D) refuse payment on legal grounds.
E) have your bill reviewed by the appropriate court official.

Question 50

Lawyers' rules of professional conduct

A) are generally not taken seriously by members of the legal profession.
B) are recommended guidelines only.
C) will, if breached, automatically result in a lawyer facing criminal charges.
D) establish professional and ethical obligations of lawyers.
E) are established by the Canadian Bar Association.

Question 51

A client who is unable to resolve a fee dispute with a lawyer can have the lawyer's bill reviewed by a court official. These court officials have the power to

A) authorize compensation to be paid by the provincial law society.
B) impose fines on either the client or the lawyer.
C) decide that the bill is too high and reduce it accordingly.
D) require that the client and lawyer attend fee mediation.
E) order that a lawyer be taken into custody.

Question 52

A provincial law society's complaint-resolution process usually begins with

A) an attempt at mediating the dispute between the client and the lawyer.
B) a review of the complaint by a court official.
C) a formal investigation.
D) oral submissions by legal counsel.
E) a hearing before a panel.

Question 53

Generally, good business decisions cannot be made without consideration of the appropriate laws.

Question 54

Complaints made to the provincial law society regarding a lawyer's conduct may result in a hearing. This hearing

A) involves the testimony of witnesses and the entering of other evidence.
B) is held in the absence of legal counsel.
C) is held before a superior court judge.
D) can result in a finding of misconduct, although the law society does not have the power to impose penalties.
E) results in compensation being paid to the client who made the complaint.

Question 55

A sophisticated client never conducts legal research on his or her own, but always seeks advice from a lawyer.

Question 56

If a law society panel finds a lawyer guilty of misconduct, the penalty could include all of the following except

A) costs of the hearing.
B) a suspension.
C) incarceration.
D) disbarment.
E) a fine.

Question 57

If you believe that you have suffered a financial loss because of your lawyer's misconduct

A) you should have the matter reviewed by a taxation or assessment officer.
B) you will automatically be awarded compensation by the provincial law society at the end of their hearing.
C) you should wait as long as possible before you proceed.
D) you may need to seek legal advice from another lawyer.
E) you may be compensated by the bar association at the end of their investigation.

Question 58

Many people lack trust or confidence in lawyers because

A) few provincial law societies have established rules for professional conduct.
B) a few well-publicized cases involving lawyers has tainted the reputation of the whole profession.
C) lawyers who act unprofessionally are not subject to any penalty.
D) most lawyers are unethical.
E) lawyers have no professional or legal obligations.

Question 59

A sophisticated client knows how to form and use the solicitor-client relationship to facilitate making good business decisions.

Question 60

"The first thing we do, let's kill all the lawyers." is a popular quotation from William Shakespeare, the meaning of which is open to debate.

Question 61

In the lawyer-client relationship, the decision-maker is the lawyer, not the client.

Question 62

Ethical behaviour implies integrity, honesty, and professionalism.

Question 63

In making business decisions involving legal issues, a sophisticated client will tend to complete some research of the relevant law on her own.

Question 64

A complaint made to the provincial law society about a lawyer's conduct does not result in compensation being paid to the client who made the complaint.

Question 65

A retainer is the amount a client must pay to a lawyer over and above regular legal fees.

Question 66

The solicitor-clent privilege refers to the duty of the lawyer to keep the information provided by the client confidential.

Question 67

Most provinces set a minimum contingency fee for family law cases.

Question 68

It is always wise to retain legal counsel when you are facing criminal charges.

Question 69

Given the growing complexity of the law and the consequence that more lawyers specialize, a business person might have multiple lawyers.

Question 70

A code of professional conduct is needed because the vast majority of lawyers are unethical.

Question 71

If a complaint regarding a lawyer's conduct cannot otherwise be resolved, and the law society decides the complaint is valid, then the lawyer will face automatic disbarment.

Question 72

Small business owners are usually able to receive legal aid with respect to the legal issues involving the business.

Question 73

It is more advantageous to retain your own lawyer than to simply use duty counsel.

Question 74

Provincial law societies may restrict the use of contingency fee agreements.

Question 75

Sophisticated clients understand that success depends on good business decisions, and good business decisions depend on appropriate information (including legal information).

Question 76

Ethics depends on a person's conscience, rather than on what the law says.

Question 77

Solicitor-client privilege refers to the lawyer making all the decisions for the client.

Question 78

Clients who believe that they have suffered financial loss due to their lawyer's misconduct should not procrastinate as limitation periods may exist.

Question 79

The time and cost to be incurred by hiring a lawyer is irrelevant: It is always worthwhile to get legal advice from a lawyer.

Question 80

There is sufficient information in the Yellow Pages to help a person decide whether a particular lawyer would be appropriate.