LPM (chapter 6) Exam Questions and Answers Already Passed Latest 2025
At the time of the Roman republic, how much did legal services cost? - Answers Free of charge
Name the 10 different types of fees - Answers -Retainer fee
-Hourly fee
-Flat (fixed) fee
-Task-based fee
-Contingency fee
-Statutory fee
-Referral fee
-Premiums
-Value-based fee
-Combination fee
Name the four types of four retainer fees - Answers -True retainer
-Nonrefundable chargeable retainer
-Nonrefundable nonchargeable retainer
-Refundable retainer
What is a true retainer fee? - Answers A fee paid to the law firm to ensure the firm's availability to the
client
Why is a true retained fee used? - Answers To secure a firm's loyalty to a client
What is a nonrefundable chargeable retainer fee? - Answers A fee paid in advance of representation and
is not refundable to the client in most circumstances. It is applied to the client's bill
What is a nonrefundable nonchargeable retainer? - Answers A fee paid to the firm at the beginning of
the case and is not applied to the client's bill. It is not refundable if the firm is discharged.
Why do many firms use nonrefundable retainers? - Answers To ensure clients loyalty to the firm and to
test a client's commitment to the case
What is a refundable retainer? - Answers A fee applied to the total fee and is refundable if the client
terminates the attorney-client relationship
, What are hourly fees? - Answers Are when clients are charged by the hour for each hour or portion of an
hour spend on the case
Hourly rates vary according to what three things? - Answers Specialty, geographic area and lawyer's
years of experience
What is a blended hourly rate? - Answers The average hourly rate of the people working on the case
What are the six factors used to determine hourly rates? - Answers -Planned or budgeted expenses,
excluding partner or shareholder compensation and benefits
-Anticipated billable time by a partner, as associate, or a paralegal
-Desired profit percentage
-Reasonable allocation of expenses by a partner, an associate, or a paralegal
-Firm collection rate-- billings divided by cash receipts
-Billing rate-- work-in-progress billable time versus past billed hours
What is the most common fee found in law offices? - Answers Hourly fee
What is a flat (fixed) fee? - Answers A set gee for a service rendered
What is a per diem flat fee? - Answers A fee charged by the attorney for a day's work
What are minimum/maximum flat fees? - Answers Min/max fees are based on the outcome of the
matter. If the outcome of the matter is extremely satisfying for the client, the max fee is charged and
vice versa
How are flat fees established? - Answers The attorney's and paralegal's hourly rates are applied to the
time estimate for completion of the case
What is task-based billing? - Answers Each phase of a case contains a list of tasks, and each task contains
activities. Each task is given a specific fee or hourly rate that is appropriate to the level of complexity of
the task.
What is a contingency fee? - Answers A fee based on a percentage of the client's recovery in a case
What are the two methods of calculating the attorney's contingency fee? - Answers The gross-fee
method and the net-fee method
What is the difference between the gross-fee method and the net-fee method of calculation? - Answers
That the attorney's fee is deducted before the costs in the gross-fee method. In the net-fee method, the
attorney's fee is calculated after deducting costs
What type of fee calculation gives the client the most money? - Answers Net-fee method
At the time of the Roman republic, how much did legal services cost? - Answers Free of charge
Name the 10 different types of fees - Answers -Retainer fee
-Hourly fee
-Flat (fixed) fee
-Task-based fee
-Contingency fee
-Statutory fee
-Referral fee
-Premiums
-Value-based fee
-Combination fee
Name the four types of four retainer fees - Answers -True retainer
-Nonrefundable chargeable retainer
-Nonrefundable nonchargeable retainer
-Refundable retainer
What is a true retainer fee? - Answers A fee paid to the law firm to ensure the firm's availability to the
client
Why is a true retained fee used? - Answers To secure a firm's loyalty to a client
What is a nonrefundable chargeable retainer fee? - Answers A fee paid in advance of representation and
is not refundable to the client in most circumstances. It is applied to the client's bill
What is a nonrefundable nonchargeable retainer? - Answers A fee paid to the firm at the beginning of
the case and is not applied to the client's bill. It is not refundable if the firm is discharged.
Why do many firms use nonrefundable retainers? - Answers To ensure clients loyalty to the firm and to
test a client's commitment to the case
What is a refundable retainer? - Answers A fee applied to the total fee and is refundable if the client
terminates the attorney-client relationship
, What are hourly fees? - Answers Are when clients are charged by the hour for each hour or portion of an
hour spend on the case
Hourly rates vary according to what three things? - Answers Specialty, geographic area and lawyer's
years of experience
What is a blended hourly rate? - Answers The average hourly rate of the people working on the case
What are the six factors used to determine hourly rates? - Answers -Planned or budgeted expenses,
excluding partner or shareholder compensation and benefits
-Anticipated billable time by a partner, as associate, or a paralegal
-Desired profit percentage
-Reasonable allocation of expenses by a partner, an associate, or a paralegal
-Firm collection rate-- billings divided by cash receipts
-Billing rate-- work-in-progress billable time versus past billed hours
What is the most common fee found in law offices? - Answers Hourly fee
What is a flat (fixed) fee? - Answers A set gee for a service rendered
What is a per diem flat fee? - Answers A fee charged by the attorney for a day's work
What are minimum/maximum flat fees? - Answers Min/max fees are based on the outcome of the
matter. If the outcome of the matter is extremely satisfying for the client, the max fee is charged and
vice versa
How are flat fees established? - Answers The attorney's and paralegal's hourly rates are applied to the
time estimate for completion of the case
What is task-based billing? - Answers Each phase of a case contains a list of tasks, and each task contains
activities. Each task is given a specific fee or hourly rate that is appropriate to the level of complexity of
the task.
What is a contingency fee? - Answers A fee based on a percentage of the client's recovery in a case
What are the two methods of calculating the attorney's contingency fee? - Answers The gross-fee
method and the net-fee method
What is the difference between the gross-fee method and the net-fee method of calculation? - Answers
That the attorney's fee is deducted before the costs in the gross-fee method. In the net-fee method, the
attorney's fee is calculated after deducting costs
What type of fee calculation gives the client the most money? - Answers Net-fee method
