©THESTAR 2024/2025 ALL RIGHTS RESERVED.
LPM (chapter 8) Exam Questions And
Correct Answers 100% Verified.
What are the four essential elements of billing? - Answer✔Communication, documentation,
regular and frequent billing, and descriptive bills
What is the most important aspect of the billing process? - Answer✔Communication
Who has the responsibility to communicate the fee agreement to the client? - Answer✔The
lawyers
When discussing bills with clients, what may paralegals not do? - Answer✔Give advice or
suggest a solution to the problem
Who has authority to adjust a client's bill? - Answer✔Attorney or administrator
When communicating with clients, what may a paralegal not do? - Answer✔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? -
Answer✔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? - Answer✔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? - Answer✔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? - Answer✔Because delaying the billing process is
very costly for a firm
What type of firm has difficulty meeting a monthly billing schedule? - Answer✔Small firms and
sole proprietorships
When should a client be billed? - Answer✔As soon as possible after the matter is completed
What happens to a client's perception of legal services as time goes by? - Answer✔It decreases
What is the most common method of billing? - Answer✔Monthly billing
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
What is a preliminary bill? - Answer✔A bill prepared for the attorney's review and
consideration for adjustment
What is a fee adjustment memorandum? - Answer✔A from used by an attorney to increase or
decrease a client's bill
What has caused law firms experience collection problems? - Answer✔Attorneys not
determining their clients' ability to pay legal fees
What two methods do firms use to offer credit to clients? - Answer✔Bank loans and credit
cards
What is fee allocation? - Answer✔A percentage of a bill that is given to the originating or
supervising attorney as compensation
What is a cost recovery system? - Answer✔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? - Answer✔Type of client, the type of case, and the policy of
the firm
What is the rule of thumb of billing styles? - Answer✔To be as descriptive as necessary to get
the bill paid
What are the two styles of hourly billing? - Answer✔Detailed and brief
What is e-billing? - Answer✔Using the internet to prepare and send electronic bills
When do collection activities begin? - Answer✔When an account is 30 days past due
When does the lawyer become involved in collection problems? - Answer✔When the account is
90 days past due
If a lawyer withdraws from a case because of nonpayment of fees, what must the lawyer do? -
Answer✔Must take steps to protect the client's interest. The attorney must give the client
reasonable notice and time to employ a new attorney
If a firm sues a client, what must the firm prove? - Answer✔The extent of the services rendered
and the reasonableness of the fee
When should a firm sue a client? - Answer✔Last resort
It is standard practice to give a client at least what noticed of collection agency involvement? -
Answer✔Two weeks' notice
What is the subject of the majority of complaints received by bar associations? -
Answer✔Complaints about legal fees
2|Page
LPM (chapter 8) Exam Questions And
Correct Answers 100% Verified.
What are the four essential elements of billing? - Answer✔Communication, documentation,
regular and frequent billing, and descriptive bills
What is the most important aspect of the billing process? - Answer✔Communication
Who has the responsibility to communicate the fee agreement to the client? - Answer✔The
lawyers
When discussing bills with clients, what may paralegals not do? - Answer✔Give advice or
suggest a solution to the problem
Who has authority to adjust a client's bill? - Answer✔Attorney or administrator
When communicating with clients, what may a paralegal not do? - Answer✔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? -
Answer✔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? - Answer✔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? - Answer✔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? - Answer✔Because delaying the billing process is
very costly for a firm
What type of firm has difficulty meeting a monthly billing schedule? - Answer✔Small firms and
sole proprietorships
When should a client be billed? - Answer✔As soon as possible after the matter is completed
What happens to a client's perception of legal services as time goes by? - Answer✔It decreases
What is the most common method of billing? - Answer✔Monthly billing
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED.
What is a preliminary bill? - Answer✔A bill prepared for the attorney's review and
consideration for adjustment
What is a fee adjustment memorandum? - Answer✔A from used by an attorney to increase or
decrease a client's bill
What has caused law firms experience collection problems? - Answer✔Attorneys not
determining their clients' ability to pay legal fees
What two methods do firms use to offer credit to clients? - Answer✔Bank loans and credit
cards
What is fee allocation? - Answer✔A percentage of a bill that is given to the originating or
supervising attorney as compensation
What is a cost recovery system? - Answer✔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? - Answer✔Type of client, the type of case, and the policy of
the firm
What is the rule of thumb of billing styles? - Answer✔To be as descriptive as necessary to get
the bill paid
What are the two styles of hourly billing? - Answer✔Detailed and brief
What is e-billing? - Answer✔Using the internet to prepare and send electronic bills
When do collection activities begin? - Answer✔When an account is 30 days past due
When does the lawyer become involved in collection problems? - Answer✔When the account is
90 days past due
If a lawyer withdraws from a case because of nonpayment of fees, what must the lawyer do? -
Answer✔Must take steps to protect the client's interest. The attorney must give the client
reasonable notice and time to employ a new attorney
If a firm sues a client, what must the firm prove? - Answer✔The extent of the services rendered
and the reasonableness of the fee
When should a firm sue a client? - Answer✔Last resort
It is standard practice to give a client at least what noticed of collection agency involvement? -
Answer✔Two weeks' notice
What is the subject of the majority of complaints received by bar associations? -
Answer✔Complaints about legal fees
2|Page
