Practical Law Office Management 4th Edition by Donnes – Test Bank

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Sample Questions Posted Below

 

 

 

 

  1. Pro bono services are legal services that are charged to a client with a low income.

 

  1. True

*b. False

 

 

  1. “Overhead” refers to a building.​

 

  1. True

*b. False

 

 

  1. A paralegal should always record the actual amount of time spent on a project and should not discount time.

 

*a. True

  1. False

 

 

  1. Some clients now routinely order audits of law firm bills.​

 

*a. True

  1. False

 

 

  1. Timekeeping is the process of billing for time.​

 

  1. True

*b. False

 

 

  1. In some states, contingency fee percentages are regulated.

 

*a. True

  1. False

 

 

  1. A retainer is either earned or unearned.​

 

*a. True

  1. False

 

 

  1. A pure retainer is used to secure a law firm for an agreed-upon time, and the firm agrees not to represent the business’s competitors.

 

*a. True

  1. False

 

 

  1. Prepaid legal services are used by law firms as a type of retainer.

 

  1. True

*b. False

 

 

  1. All fee agreements should be in writing.​

 

*a. True

  1. False

 

 

  1. __________ is the process of issuing invoices for the purpose of collecting monies for legal services performed and being reimbursed for expenses.​

 

  1. ​Timekeeping and billing
  2. Timekeeping​
  3. ​Record-keeping

*d. ​Billing

  1. ​None of the above

 

 

  1. _____________ is the process of tracking how attorneys and paralegals use their time.​

 

  1. ​Timekeeping and billing

*b. ​Timekeeping

  1. ​Record-keeping
  2. ​Billing
  3. ​none of the above

 

 

  1. Client, blended, activity, and attorney/paralegal rates are all forms of this type of fee agreement.​

 

  1. ​contingency
  2. ​flat fee

*c. ​hourly rate

  1. ​retainer
  2. ​value billing

 

 

  1. The __________________________ is based on the attorney’s/paralegal’s experience in a particular area.​

 

  1. ​client hourly rate
  2. ​blended hourly rate
  3. ​contingency fee
  4. ​activity hourly rate

*e. ​none of the above

 

 

  1. The ______________ is based on a single hourly rate for the case.​

 

*a. ​client hourly rate

  1. ​retainer agreement
  2. ​attorney/paralegal hourly rate
  3. ​activity hourly rate
  4. ​contingency fee

 

 

  1. The _________________ is an hourly rate that is set by taking into account the mix of law office staff working on the matter.​

 

*a. ​blended hourly rate

  1. ​client hourly rate
  2. ​attorney/paralegal hourly rate
  3. ​activity hourly rate
  4. ​contingency fee

 

 

  1. The _______________ is based on different hourly rates, depending on what type of service is performed.​

 

  1. ​client hourly rate
  2. ​blended hourly rate

*c. ​activity hourly rate

  1. ​attorney/paralegal hourly rate
  2. ​contingency fee

 

 

  1. A(n) __________________ is a fee that is collected if the attorney successfully represents the client. The attorney receives a percentage of the amount recovered.​

 

  1. ​case advance fee
  2. ​retainer fee
  3. ​earned retainer fee
  4. ​unearned retainer fee

*e. ​contingency fee

 

 

  1. A fee agreement used in representing plaintiffs in personal injury cases, workers’ compensation cases, and medical malpractice cases is called a(n) _________________.​

 

  1. ​case advance fee
  2. ​retainer fee
  3. ​earned retainer fee
  4. ​unearned retainer fee

*e. ​contingency fee

 

 

  1. A contingency fee agreement cannot be used in the following types of cases, according to many ethical rules.​

 

  1. ​personal injury
  2. ​domestic relations
  3. ​workers’ compensation
  4. ​criminal

*e. ​b and d

 

 

  1. This type of fee is used most often when preparing wills or in uncontested divorces.​

 

  1. ​contingency

*b. ​flat fee

  1. ​hourly rate
  2. ​retainer
  3. ​all of the above

 

 

  1. A(n) ________________ is a bank account where unearned client funds are deposited.​

 

  1. ​trust account
  2. ​escrow account
  3. ​savings account
  4. ​retainer account

*e. ​a and b

 

 

  1. A cash advance is an example of a(n) ______________________.​

 

  1. ​case advance fee
  2. ​retainer for general representation
  3. ​earned retainer fee

*d. ​unearned retainer fee

  1. ​pure retainer

 

 

  1. A “nonrefundable retainer” usually means the retainer is a(n) __________________________.​

 

  1. ​case advance fee
  2. ​retainer for general representation

*c. ​earned retainer fee

  1. ​unearned retainer fee
  2. ​pure retainer

 

 

  1. A case retainer is a(n) __________________________.​

 

  1. ​case advance fee
  2. ​retainer for general representation

*c. ​earned retainer fee

  1. ​unearned retainer fee
  2. ​pure retainer

 

 

  1. Fees given to a prevailing party under a statute are called ____________________.​

 

  1. ​case advance fees
  2. ​retainers for general representation
  3. ​earned retainer fees
  4. ​unearned retainer fees

*e. ​court-awarded fees

 

 

  1. A fee agreement in which the attorney and client reach a consensus on the amount of fees to be charged is called a(n) ________________________.​

 

  1. ​cash retainer
  2. ​hourly rate agreement
  3. ​activity hourly rate agreement
  4. ​court-awarded fee

*e. ​none of the above

 

 

  1. Factors to determine if a fee is reasonable include ________________________.​

 

  1. ​what attorneys across the country charge for the service
  2. ​how wealthy the client is
  3. ​the fees customarily charged in the locality for similar services
  4. ​the experience and reputation of the attorney

*e. ​c and d

 

 

  1. ___________ is time that a paralegal spends working on a case.​

 

  1. ​Chargeable time
  2. ​Nonbillable time
  3. ​Nonchargeable time
  4. ​Paralegal time

*e. ​None of the above

 

 

  1. ___________ is time that a paralegal cannot bill to a client.​

 

  1. ​Chargeable time

*b. ​Nonbillable time

  1. ​Nonchargeable time
  2. ​Billable time
  3. ​None of the above

 

 

 

[j] 1. A false representation of a present or past fact made by a defendant.

[m] 2. A fee for legal services that is billed as fixed amount.

[c] 3. ​The process of issuing invoices for the purpose of collecting monies for legal services performed and being reimbursed for expenses.

[l] 4. When law firms bill clients using means such as the Internet.​

[e] 5. ​A fee that is billed at the beginning of a matter, is not refundable to the client, and is usually paid at the beginning of the case as an incentive for the office to take the case.

[o] 6. ​The process of earning a profit from legal services that are provided by law office personnel (usually partners, associates, and paralegals).

[v] 7. The process of tracking time for the purpose of billing clients.​

[z] 8. A type of fee agreement that is based not on the time spent to perform the work but on the basis of the perceived importance of the services to the client.

[i] 9. ​Fees given to the prevailing parties pursuant to certain federal and state statutes.

[a] 10. A report showing all cases that have outstanding balances due and how long these balances are past due.

[_] 11. ​Term for the money the law office or attorney is entitled to deposit in the office’s or attorney’s own bank account.

[_] 12. A rate that is set by taking into account the mix of attorneys working on the matter.

[_] 13. Actual time that a paralegal or attorney spends working on a case and that is directly charged to a client’s account.

[_] 14. ​A fee for legal services that is billed to the client in 60-minute increments based on an agreed-upon rate.

[_] 15. ​A report showing cases (e.g., criminal, personal injury, bankruptcy, etc.) to determine which are the most profitable.

[_] 16. Monies that are paid up front by the client as an advance against the attorney’s future fees and expenses. Until the monies are actually earned by the attorney or law office, they belong to the client.

[_] 17. General administrative costs of doing business, including costs such as rent, utilities, phone, and salary costs for administrators.

[_] 18. ​Term referring to when corporate and government law practices contract with law offices (i.e., outside of the corporation or government practice) to help them with legal matters, such as litigation, specialized contracts, stock/bond offerings, and so forth

[_] 19. ​Time that cannot be directly billed to a paying client.

[_] 20. ​A plan that a person can purchase that entitles the person to receive legal services either free or at a greatly reduced rate.

[_] 21. A separate bank account, apart from a law office’s or attorney’s operating checking account, where fund belonging to the client are deposited.

[_] 22. Unearned monies provided before work begins to use against the attorney’s future fees and expenses.

[_] 23. ​A record of detailed information about the legal services professionals provide to each client.

[_] 24. Legal services that are provided free of charge to a client who is not able to pay for the services.

[_] 25. ​Reports used to help analyze whether the office is operating in an efficient and effective manner.

[_] 26. ​Fee collected if the attorney successfully represents the client.

 

  1. aged accounts receivable report
  2. ​billable time
  3. ​billing
  4. ​blended hourly rate fee
  5. ​case retainer
  6. ​case type productivity report
  7. ​cash advance
  8. ​contingency fee
  9. ​court-awarded fees
  10. ​criminal fraud
  11. ​earned retainer
  12. ​electronic billing
  13. ​flat fee
  14. ​hourly rate fee
  15. ​leveraging
  16. ​management reports
  17. ​nonbillable time
  18. ​outside counsel
  19. ​overhead
  20. ​prepaid legal services
  21. ​pro bono
  22. ​timekeeping
  23. ​time slip/time sheet
  24. ​trust or escrow account
  25. ​unearned retainer
  26. ​value billing

 

 

  1. What type of fee agreements must be in writing?

 

Correct Answer(s):

 

 

  1. Define criminal fraud. When is it applicable, regarding timekeeping and billing?

 

Correct Answer(s):

 

 

  1. Distinguish between an activity hourly rate and a blended hourly rate charge.

 

Correct Answer(s):

 

 

  1. Distinguish between an earned and unearned retainer.

 

Correct Answer(s):

 

 

  1. What is the difference between timekeeping and billing?​

 

Correct Answer(s):

 

 

  1. List and describe three types of fee agreements, and explain when they are the most appropriate to use.

 

 

  1. What is e-billing?

 

 

  1. Name four of the eight factors that courts use to determine if a fee is unreasonable.

 

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