Answer: Referrals from trusted colleagues, friends, and relatives; the Yellow Pages; other
advertisements; and the relevant lawyer referral service.
Diff: 1 Type: ES Page Ref: 8
Topic: Ch. 1 - How to Find an Appropriate Lawyer
Skill: Recall
Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.
Bloom's Taxonomy: Knowledge
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91) Identify the advantages to a business person of maintaining an ongoing relationship with a
lawyer.
Answer: The lawyer will know and understand the client and the client's business. This will
enable the lawyer to provide legal advice more efficiently (thereby reducing legal costs) and to
customize legal advice (making it more useful). In addition, the lawyer will be more inclined to
give priority to the longstanding client.
Diff: 2 Type: ES Page Ref: 8
Topic: Ch. 1 - How to Find an Appropriate Lawyer
Skill: Applied
Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.
Bloom's Taxonomy: Knowledge
92) What is the Canadian Bar Association and what is its purpose?
Answer: The Canadian Bar Association is a professional organization representing judges and
lawyers. Two of its purposes are to enhance the profession and the commercial interests of its
members.
Diff: 3 Type: ES Page Ref: 8
Topic: Ch. 1 - How to Find an Appropriate Lawyer
Skill: Applied
Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.
Bloom's Taxonomy: Knowledge
93) What is a provincial law society and what is its mandate?
Answer: A provincial law society is a self-governing body for lawyers in a province. Its
mandate usually involves regulating the legal profession in the public interest.
Diff: 3 Type: ES Page Ref: 8
Topic: Ch. 1 - How to Find an Appropriate Lawyer
Skill: Applied
Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.
Bloom's Taxonomy: Knowledge
94) List the three main ways in which lawyers may charge their clients.
Answer: Lawyers may charge their clients using fixed fees, hourly rates, and/or contingency
fees.
Diff: 1 Type: ES Page Ref: 9
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Recall
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
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© 2020 Pearson Canada Inc.
95) When is the fixed fee method of billing most often used?
Answer: Fixed fees are most often used for specific tasks such as preparing a will, purchasing a
house, or incorporating a business.
Diff: 2 Type: ES Page Ref: 9
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Applied
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
96) In addition to legal fees, what other costs is a client responsible for paying?
Answer: Clients may be responsible for disbursements (out-of-pocket costs incurred by the
lawyer on the client's behalf), other charges such as service charges of the firm for conducting
searches, and applicable taxes on legal bills.
Diff: 2 Type: ES Page Ref: 10
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Applied
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
97) What are disbursements and what do they generally include?
Answer: Disbursements are out-of-pocket costs incurred by the lawyer on the client's behalf.
They typically include court filing fees, long distance telephone charges, courier charges, and
expert fees.
Diff: 2 Type: ES Page Ref: 10
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Applied
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
98) What is a retainer?
Answer: A retainer works as a deposit. It is an amount paid by a client and deposited into a
lawyer's trust account to the credit of the client. When the lawyer bills the client, the amount
owing is taken from the retainer.
Diff: 2 Type: ES Page Ref: 10
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Applied
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
99) What is a contingency fee arrangement?
Answer: The lawyer is paid a percentage of the amount a client collects from settlement or
judgment. If the client does not collect anything, the lawyer does not receive anything.
Diff: 2 Type: ES Page Ref: 9
Topic: Ch. 1 - How Lawyers Bill Their Clients
Skill: Recall
Objective: Chapter 1: 5. Review how lawyers bill their clients.
Bloom's Taxonomy: Knowledge
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100) When is a contingency fee agreement most often used?