LPM chapter 8 Exam Questions and Answers With Verified Solutions 2025
What are the four essential elements of billing? - ✔✔Communication, documentation, regular and
frequent billing, and descriptive bills
What is the most important aspect of the billing process? - ✔✔Communication
Who has the responsibility to communicate the fee agreement to the client? - ✔✔The lawyers
When discussing bills with clients, what may paralegals not do? - ✔✔Give advice or suggest a solution to
the problem
Who has authority to adjust a client's bill? - ✔✔Attorney or administrator
When communicating with clients, what may a paralegal not do? - ✔✔Discuss the duration of a case,
estimate the cost of a matter, give an opinion as to the possible outcome of a matter, or discuss the
lawyer's strategy
When a paralegal has a communication with a client, what must a paralegal do? - ✔✔Document tat the
conversation took place and the contents of the conversation
How will a firm be rewarded for a client's complete understanding of the case? - ✔✔A client's complete
understanding of the case will reward a firm in prompt payment of the firm's invoices
What is an engagement letter? - ✔✔A letter that summarizes the scope of representation and the fee
agreement between a lawyer and a client
Why should billing be regular and frequent? - ✔✔Because delaying the billing process is very costly for a
firm
, What type of firm has difficulty meeting a monthly billing schedule? - ✔✔Small firms and sole
proprietorships
When should a client be billed? - ✔✔As soon as possible after the matter is completed
What happens to a client's perception of legal services as time goes by? - ✔✔It decreases
What is the most common method of billing? - ✔✔Monthly billing
What is a preliminary bill? - ✔✔A bill prepared for the attorney's review and consideration for
adjustment
What is a fee adjustment memorandum? - ✔✔A from used by an attorney to increase or decrease a
client's bill
What has caused law firms experience collection problems? - ✔✔Attorneys not determining their
clients' ability to pay legal fees
What two methods do firms use to offer credit to clients? - ✔✔Bank loans and credit cards
What is fee allocation? - ✔✔A percentage of a bill that is given to the originating or supervising attorney
as compensation
What is a cost recovery system? - ✔✔A utility program that allows data to be transferred to a billing
program by a copier or telephone system
What determines the style of a bill? - ✔✔Type of client, the type of case, and the policy of the firm
What is the rule of thumb of billing styles? - ✔✔To be as descriptive as necessary to get the bill paid
What are the four essential elements of billing? - ✔✔Communication, documentation, regular and
frequent billing, and descriptive bills
What is the most important aspect of the billing process? - ✔✔Communication
Who has the responsibility to communicate the fee agreement to the client? - ✔✔The lawyers
When discussing bills with clients, what may paralegals not do? - ✔✔Give advice or suggest a solution to
the problem
Who has authority to adjust a client's bill? - ✔✔Attorney or administrator
When communicating with clients, what may a paralegal not do? - ✔✔Discuss the duration of a case,
estimate the cost of a matter, give an opinion as to the possible outcome of a matter, or discuss the
lawyer's strategy
When a paralegal has a communication with a client, what must a paralegal do? - ✔✔Document tat the
conversation took place and the contents of the conversation
How will a firm be rewarded for a client's complete understanding of the case? - ✔✔A client's complete
understanding of the case will reward a firm in prompt payment of the firm's invoices
What is an engagement letter? - ✔✔A letter that summarizes the scope of representation and the fee
agreement between a lawyer and a client
Why should billing be regular and frequent? - ✔✔Because delaying the billing process is very costly for a
firm
, What type of firm has difficulty meeting a monthly billing schedule? - ✔✔Small firms and sole
proprietorships
When should a client be billed? - ✔✔As soon as possible after the matter is completed
What happens to a client's perception of legal services as time goes by? - ✔✔It decreases
What is the most common method of billing? - ✔✔Monthly billing
What is a preliminary bill? - ✔✔A bill prepared for the attorney's review and consideration for
adjustment
What is a fee adjustment memorandum? - ✔✔A from used by an attorney to increase or decrease a
client's bill
What has caused law firms experience collection problems? - ✔✔Attorneys not determining their
clients' ability to pay legal fees
What two methods do firms use to offer credit to clients? - ✔✔Bank loans and credit cards
What is fee allocation? - ✔✔A percentage of a bill that is given to the originating or supervising attorney
as compensation
What is a cost recovery system? - ✔✔A utility program that allows data to be transferred to a billing
program by a copier or telephone system
What determines the style of a bill? - ✔✔Type of client, the type of case, and the policy of the firm
What is the rule of thumb of billing styles? - ✔✔To be as descriptive as necessary to get the bill paid
