LPM Chapter 6 Exam Questions and Answers With Verified Solutions 2025
At the time of the Roman republic, how much did legal services cost? - ✔✔They were free of charge :)
Name the 10 different types of fees - ✔✔1) Retainer
2) Hourly
3) Flat or Fixed
4) Task-based
5) Contingency
6) Statutory
7) Referral
8) Premiums
9) Value based
10) Combination
Name the 4 types of retainers - ✔✔1) True
2) Nonrefundable Chargeable retainer
3) Nonrefundable nonchargeable retainer
4) Refundable chargeable
What is a true retainer? - ✔✔A fee paid to the law firm to ensure the firm's loyalty to the client
Why is a true retainer fee used? - ✔✔To ensure the firm's loyalty to the client
What is a nonrefundable chargeable retainer? - ✔✔Paid in advance of representation and is not
refundable to the client under most circumstances
What is a nonrefundable nonchargeable retainer? - ✔✔Paid to the firm at the beginning of the case and
is not applied to the client's bill
, Why do may firms use nonrefundable retainers? - ✔✔To ensure client's loyalty to the firm and to test a
client's commitment to the case
What is a refundable retainer? - ✔✔It is applied to the total fee and is refundable if the client terminates
the case
What are hourly fees? - ✔✔Client's are charged by the hour for each hour or portion of an hour spent
on the case
Hourly rates vary according to what 3 things? - ✔✔Speciality, geographic location, and the lawyer's
years of experience
What is blended hourly rates? - ✔✔Average hourly rate of each person working on the case
What are the 6 factors used to determine hourly rates? - ✔✔1) Planned or budgeted expenses
2) Anticipated billable time made by the partner and the associates
3) Desired profit percentage
4) Reasonable allocation of expenses by a partner, an associate, or a paralegal
5) Firm collection rate
6) Billing Rate
What is the most common fee in law offices? - ✔✔Hourly
What is a flat (fixed) fee? - ✔✔Set fee for service rendered
What is per diem flat fee? - ✔✔Fee charged by the attorney for one day's work
What are minimum and maximum flat fees? - ✔✔The maximum fee is charged when the client's
outcome is satisfying, if the outcome is not satisfying to the client the minimum fee is charged
At the time of the Roman republic, how much did legal services cost? - ✔✔They were free of charge :)
Name the 10 different types of fees - ✔✔1) Retainer
2) Hourly
3) Flat or Fixed
4) Task-based
5) Contingency
6) Statutory
7) Referral
8) Premiums
9) Value based
10) Combination
Name the 4 types of retainers - ✔✔1) True
2) Nonrefundable Chargeable retainer
3) Nonrefundable nonchargeable retainer
4) Refundable chargeable
What is a true retainer? - ✔✔A fee paid to the law firm to ensure the firm's loyalty to the client
Why is a true retainer fee used? - ✔✔To ensure the firm's loyalty to the client
What is a nonrefundable chargeable retainer? - ✔✔Paid in advance of representation and is not
refundable to the client under most circumstances
What is a nonrefundable nonchargeable retainer? - ✔✔Paid to the firm at the beginning of the case and
is not applied to the client's bill
, Why do may firms use nonrefundable retainers? - ✔✔To ensure client's loyalty to the firm and to test a
client's commitment to the case
What is a refundable retainer? - ✔✔It is applied to the total fee and is refundable if the client terminates
the case
What are hourly fees? - ✔✔Client's are charged by the hour for each hour or portion of an hour spent
on the case
Hourly rates vary according to what 3 things? - ✔✔Speciality, geographic location, and the lawyer's
years of experience
What is blended hourly rates? - ✔✔Average hourly rate of each person working on the case
What are the 6 factors used to determine hourly rates? - ✔✔1) Planned or budgeted expenses
2) Anticipated billable time made by the partner and the associates
3) Desired profit percentage
4) Reasonable allocation of expenses by a partner, an associate, or a paralegal
5) Firm collection rate
6) Billing Rate
What is the most common fee in law offices? - ✔✔Hourly
What is a flat (fixed) fee? - ✔✔Set fee for service rendered
What is per diem flat fee? - ✔✔Fee charged by the attorney for one day's work
What are minimum and maximum flat fees? - ✔✔The maximum fee is charged when the client's
outcome is satisfying, if the outcome is not satisfying to the client the minimum fee is charged
