Law Office Management Final

Boutique

A firm that specializes in one area of law

Bait-and-switch

Advertising scheme

Lodestar

Amount of time X hourly rate

Ceiling

Boundary

Executive committee

Committee management style

In-house counsel

Corporate legal department

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

False

A contingency fee is the most common fee charged.

False

A democratic type of management is an effective management style.

False

A true retainer fee is refundable to the client.

False

Contract attorneys work directly for the public.

False

Fee splitting discourages capping activities.

False

Management committees make swift decisions.

False

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

False

The four considerations of taking a contingency case are (RISC) risk, inflation, significant expense, and communication concerns.

False

The structure and organization of a law office is determined by the government.

False

The two types of flat fees are minor and major flat fees.

False

There are no limits on contingency fees.

False

Pad

Fraud

____________________ costs are also called direct costs.

Hard

Lawyer hopping

Many lawyers

Pro bono

No cost

Outside counsel

Private law firms

P.C.

Professional Corporation

Precedent

Set by a judge

Portal-to-portal charges

Travel time

A corporate legal department functions around the projects of the corporation.

True

A firm's fee structure must maximize profitability.

True

A freelance paralegal service works only for attorneys.

True

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

True

A legal administrator manages a law firm.

True

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

True

All shareholders in a professional legal corporation must be attorneys in most states.

True

An international firm has branch offices in other countries.

True

Attracting clients is not a concern for a corporate legal department.

True

Blended hourly rates are an average of all timekeepers' hourly rates

True

Blended hourly rates encourage the use of paralegals.

True

Hourly rates vary according to specialty.

True

In an office-sharing arrangement, an attorney may do work for the law firm in lieu of paying rent.

True

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

True

In most states, for an attorney to be designated a certified specialist, the attorney must take a specialist exam.

True

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

True

New attorneys are generally general practitioners.

True

One disadvantage to a partnership is that all partners are liable for the malpractice of other partners.

True

P.C. stands for "professional corporation."

True

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

True

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

True

A freelance paralegal service

a and b only

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

a and b only a. true b. nonrefundable chargeable

A general practitioner

a. does not specialize

Globalization is

a. law firms that establish offices in other countries to service international clients

Gratuitous referral fees are

a. prohibited by most states

Legal clinics

a. provide low-income people with low-cost legal services

Paralegals should not quote fees because

a. they do not have the requisite training to identify issues and problems of a case

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

a. time required to complete the case

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

a. tort

A law firm's culture consists of

all of the above

A task-based fee is

b. based on the complexity of the task

A modified contingency fee is

b. based upon the difference of the amount at issue and the amount of the recovery

Soft costs do not include

b. filing fees

A firm with a decentralized form of management is

b. managed in segments

A general practitioner

b. practices in all areas of the law

A lawyer may not share legal fees with a nonlawyer except

b. when paid to a profit sharing plan

Contingency fees are paid

c. at the end of the case

The size of a law firm is measured by

c. the number of attorneys it employs

The two forms of management are ____________________ and ____________________.

centralized, decentralized

A lien that is placed on a judgment is called a(n) ____________________ lien.

charging

In which account are refundable chargeable retainer fees deposited? ____________________.

client funds trust account trust account trust

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

combination

A firm's area of ____________________ determines its clientele and need for staff.

concentration

Corporate legal departments prefer task-based fees because they can

d. all of the above

What has influenced whether an attorney is a sole practitioner or in group practice?

d. all of the above

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

d. corporate clients are demanding it

A partnership

e. a and c only

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

e. all of the above

Lodestar

e. all of the above

Multiple use documents are

e. all of the above

The federal government

employs legal technicians and paralegal specialists

A mega-firm

employs more than 1,000 attorneys

The federal government classifies workers in the ____________________.

general schedule

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

hourly

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

hourly rate

An LLC is a(n) ____________________.

limited liability company

The four types of large law firms are ____________________, ____________________, ____________________, and ____________________.

local, regional, national, international

The ____________________ management style is most commonly found in law firms.

managing partner

What type of law firm employs 1,000 or more attorneys? ____________________.

mega-firm

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

misunderstanding

A boutique firm

none of the above

A corporate legal department has

none of the above

In a professional corporation

owners receive dividends

An attorney may charge a(n) ____________________ flat fee for each day worked.

per diem

Most paralegal employers are ____________________.

private law firms and attorneys

A lien that is placed on a client's property is called a(n) ____________________ lien.

retaining

The structure and organization of a law office is determined by what four things? ___________________, ___________________, ___________________, and ___________________.

size, specialty, management style, form

Most attorneys prefer to work in ____________________ law firms.

small

The four types of business structures for private law firms are ____________________.

sole proprietorship, partnership, professional corporation, and limited liability company

Statutory fees are set by ____________________.

statute

The two types of office-sharing associations are the ____________________ concept and the ____________________ concept.

suite, firm

Ownership of a professional corporation is determined by ____________________.

the number of shares of stock owned

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

value-based