ALA Regulatory Compliance 3

Question 1

The Sarbanes-Oxley Act (SOX) provisions most relevant to law firms primarily concern:

Accepted Answer

Attorney conduct regarding securities fraud and document retention obligations

Answer

SOX imposed obligations on attorneys appearing before the SEC, including reporting up-the-ladder requirements and prohibitions against destroying documents relevant to securities violations.

Question 2

Which of the following best describes a 'hold' notice (litigation hold) in a compliance context?

Accepted Answer

An internal directive to preserve documents and data relevant to anticipated or pending litigation

Answer

A litigation hold is an internal communication requiring relevant personnel to preserve documents, electronically stored information, and other evidence related to actual or anticipated litigation.

Question 3

Under the Health Insurance Portability and Accountability Act (HIPAA), when does a law firm most commonly become a 'business associate'?

Accepted Answer

When representing any healthcare provider or handling Protected Health Information on its behalf

Answer

A law firm becomes a HIPAA business associate when it performs services for a covered entity and those services involve access to Protected Health Information (PHI).

Question 4

The Family and Medical Leave Act (FMLA) entitles eligible employees at covered law firms to take up to how many weeks of unpaid leave in a 12-month period?

Accepted Answer

12 weeks

Answer

FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.

Question 5

A law firm's trust account is found to have a shortfall due to a bookkeeper error. The legal administrator's FIRST obligation is to:

Accepted Answer

Report the shortfall to the managing partner immediately and initiate a reconciliation investigation

Answer

Trust account shortfalls must be escalated to firm leadership immediately so that the cause can be identified, the account restored, and any required ethical disclosures evaluated.

(ALA) Association of Legal Administrators CLM Practice Test

(ALA) Association of Legal Administrators CLM Practice Test

ALA Regulatory Compliance 3