The Business of Law - Module 5 of 5

Question 1

Which of the following is false?

Generally, lawyers are free to arrange fee payments as they see fit

Lawyers must charge a flat rate or determinate amount, and may not condition the fee amount on the outcome of the case

Lawyers have an ethical obligation to disclose to their clients the basis of the fee upon undertaking the representation of the client

The rules of legal ethics impose obligations on lawyers with regard to fees in order to protect clients who may not have the knowledge and experience to evaluate whether a fee sought by the lawyer is fair and reasonable

Question 2

Which of the following is not a factor in determining whether the fee sought by a lawyer for legal services is a reasonable fee?

The amount of time and skill needed to deal with the legal questions involved in the matter

Whether accepting the representation would make it likely that the lawyer could not accept additional clients at the same time

The customary fee for similar legal services

All of the above

Question 3

Which of the following is true?

Contingency fees are only permissible with the consent of the court

It is up to the complete discretion of the lawyer whether to charge a contingency fee for any type of representation

While lawyers may generally charge contingency fees as they see fit, the rules of legal ethics and state law limit the percent of a recovery a lawyer may ask, as well as the types of cases in which contingency arrangements may be used

Contingency fees are not permissible if the client is a minor

Question 4

Which of the following is not a reason why there are special rules of ethics for contingency fees?

The use of contingency fees can offer incentives for a lawyer to pursue an outcome which is not in the best interests of the client

Contingency fees are often used when a client is not in a financial position to pay lawyers’ fees

Contingency fees are rarely used, and so require special rules to protect clients

Contingency arrangements, and methods for calculating fees, can be complex, and difficult for unsophisticated clients to understand

Question 5

All of the following are permissible fee arrangements, except?

Two lawyers agree to be jointly responsible for a representation, and split the clients’ fees evenly between them

A lawyer seeks to charge a contingency fee at a higher percentage than allowed by state law, and asks the court to permit the fee due to special circumstances

A highly experienced lawyer agrees to represent a client in a sophisticated and time-consuming case. The lawyer charges the client an extremely high fee that he believes is equivalent to what other lawyers of similar skill and training would ask

A man accused of a crime asks a lawyer to represent him. The lawyer agrees to represent him and offers to condition payment of the fee on the outcome of the trial

Question 6

An advertisement by a lawyer may never include _____?

False or misleading claims

A statement concerning the lawyer’s specialty field pf practice

A comparison between the quality of service provided by the lawyer with that of other lawyers

Testimonials from former clients

Question 7

Which of the following would not be considered an "in-person solicitation" by a lawyer of an individual whom he sees as a prospective client?

Calling the individual at home

Using a real-time video communications platform to persuade the individual to hire him

Approaching the individual on the street after witnessing her suffering injuries in a car accident

Mass texting a group of people with information about his law practice

Question 8

Which of the following is permissible?

Lawyer advertising which does not include any information as to who is responsible for the content of the advertisement

Paying a former client to recommend the lawyer’s services to others

A lawyer speaks to her brother in person about providing legal services on his behalf

Lawyer advertising which implies the lawyer is a certified specialist in an area of law, but provides no further information about the certifying organization

Question 9

Which of the following is not a permissible fee arrangement?

Splitting fees between lawyers

A lawyer splitting fees with a non-lawyer

Contingency fees in personal injury cases

A lawyer directs work to another lawyer and receives a referral fee

Question 10

Which of the following is true?

A lawyer may offer a gift to an individual who recommends her services if it is clear that the gift is an expression of gratitude rather than a form of compensation

An inexperienced lawyer may charge the industry standard rate for time he spends researching an area of law he is unfamiliar with

Due to Free Speech protections, states may not regulate lawyers’ advertising at all

A lawyer may approach an individual to solicit a prospective client in-person, but only if he reasonably believes he is competent to handle the legal matter facing the prospective client