Question 1

Law firms keep track of billable time by requiring legal professionals to submit time slips, and usually require attorneys or paralegals to generate a minimum number of billable hours per year. The reason for requiring a minimum number of billable hours is

Accepted Answer

The financial health of a law firm largely depends on the billable hours generated by its employees, as these hours directly translate into revenue for the firm.

Question 2

According to a compensation survey conducted by Paralegal Today in 2012, billing rates for paralegals range from _________per hour.

Accepted Answer

The correct billing rates for paralegals according to the 2012 Paralegal Today compensation survey range from $60 to $155 per hour.

Question 3

Which of the following types of cases typically cannot have contingency-fee agreements?

Accepted Answer

Contingency-fee agreements are generally not allowed in divorce cases, probate cases, and workers' compensation cases due to ethical and legal considerations, ensuring fairness and preventing conflicts of interest.

Question 4

Attorney Haynesworth spends three hours in the county circuit court waiting to argue a motion for client Adams. While he waits, he reads several cases for a brief that he is preparing for client Johnson and talks to another judge's clerk about Johnson's case. If attorney Haynesworth bills client Adams for three hours and client Johnson for three hours (a total of six billable hours), attorney Haynesworth has engaged in which of the following?

Accepted Answer

Attorney Haynesworth has engaged in double billing by charging two clients for the same time period. This practice is unethical as it involves billing more than one client for the same hours worked, essentially charging twice for a single block of time.

Question 5

Time spent on tasks such as administrative work, staff meetings, or performance reviews is________ time.

Accepted Answer

Administrative work, staff meetings, and performance reviews are typically considered nonbillable time as they do not directly generate revenue or client charges.

Question 6

Mixing together a client's funds with the law firm's funds, called_________ , is one of the most common ways in which attorneys breach their professional obligations regarding client funds.

Accepted Answer

Commingling refers to the practice of mixing a client's funds with the personal or business funds of a professional, such as a lawyer, which is against the ethical rules governing attorneys' handling of client funds.

Question 7

A law firm's overhead expenses, which are a part of the billing rates of lawyers and paralegals, include all of the following except

Accepted Answer

Personal transportation is typically not included in a law firm's overhead expenses. Overhead expenses usually consist of costs related to running the office, such as rent, utilities, and supplies, rather than individual personal expenses.

Question 8

Define the term employment at will. How have court decisions and statutes affected "at-will" employment over time? Where might a paralegal find information regarding his or her employer's policies on employment termination?

Accepted Answer

The answer of Define the term employment at will. How...

Question 9

Keeping clients reasonably informed is an attorney's

Accepted Answer

Keeping clients reasonably informed is considered a duty of an attorney, as it is essential for maintaining transparency and trust in the attorney-client relationship.

Question 10

What is the purpose of an employee performance evaluation? What criteria are used to evaluate a paralegal employee? How often are employee performance evaluations conducted?

Accepted Answer

The answer of What is the purpose of an employee...

Question 11

A(n)__________ account is a bank or escrow account in which one party holds funds belonging to another party; it is a bank account into which funds advanced to a law firm by a client are deposited.

Accepted Answer

A trust account is specifically designed for holding funds that belong to another party, such as when a client advances funds to a law firm for future services.

Question 12

In an ethical opinion, the American Bar Association (ABA) indicated that attorneys are prohibited from which of the following?

Accepted Answer

The American Bar Association (ABA) prohibits attorneys from charging more than one client for the same hours of work as it constitutes double billing, which is unethical. Charging by the hour, on a contingency-fee basis in personal injury cases, and on a fixed-fee basis for services like drafting a simple will are all standard and ethically permissible billing practices.

Question 13

Billing more than one client for the same billable time is called

Accepted Answer

Double billing refers to the unethical practice of charging more than one client for the same work hours or services, essentially billing multiple clients for the same period of work.

Question 14

Tips for communication by e-mail include which of the following?

Accepted Answer

All of the options provided are considered good practices for communication by e-mail, especially in a professional or legal setting. Maintaining a professional tone, ensuring messages are error-free, confirming receipt of important communications, and disclosing one's professional status (such as being a paralegal) are all important to effective and responsible email communication.

Question 15

A(n)_________ is a record documenting, for billing purposes, the hours or fractions of hours that an attorney or paralegal worked for each client, the date on which the work was performed, and the type of work that was undertaken.

Accepted Answer

A time slip is the correct term for a record that documents the hours or fractions of hours worked by an attorney or paralegal for billing purposes, including the date and type of work performed.

Question 16

A_________ is a signed document stating that the attorney or the law firm has been hired by the client to provide legal services and that the client agrees to pay the fees set forth in the contract.

Accepted Answer

A retainer agreement is a signed document that outlines the arrangement between a client and an attorney (or law firm) for legal services, including the payment of fees.

Question 17

An advance payment made by a client to a firm or attorney to cover part of the legal fees and/or costs that will be incurred on the client's behalf is called a(n)

Accepted Answer

A retainer is an advance payment made by a client to a firm or attorney, which is held in a trust account and used to cover part of the legal fees and/or costs that will be incurred on the client's behalf as the work progresses.

Question 18

Ways in which attorneys can fulfill their duty to keep their clients informed include which of the following?

Accepted Answer

Attorneys can keep their clients informed through various means of communication, including sending billing statements, making phone calls, and sending emails. All these methods help ensure that the client is up-to-date on the status of their case and any financial matters related to it.

Question 19

A slip of paper used to record any expense or cost that is incurred on behalf of a client is called a(n)

Accepted Answer

An expense slip is used to record any expense or cost that is incurred on behalf of a client, ensuring accurate billing and reimbursement.

Question 20

When the fees charged to the client vary depending on the results of the representation-for example, whether a lawsuit is lost, won, or settled-it is called

Accepted Answer

Value billing refers to a pricing strategy where the fees charged are based on the value or outcome of the service provided, rather than the time spent or the resources used. This is common in legal practices where the fee might depend on the results of a case, such as winning a lawsuit or reaching a favorable settlement.

Quiz 3: The Inner Workings of the Law Office