Law Firm Client Relations and Communication 2

Question 1

What is a retainer fee?

Accepted Answer

An upfront payment made by a client to secure an attorney's services

Answer

A retainer fee is an advance payment made by a client that is held in trust and drawn upon as the attorney performs work.

Question 2

What is 'client trust accounting' and why is it critical?

Accepted Answer

Maintaining separate accounts for client funds to prevent commingling

Answer

Client trust accounting requires keeping client funds in dedicated accounts separate from firm operating funds, which is a core ethical requirement.

Question 3

When should an attorney send a client a status update?

Accepted Answer

Whenever there is a significant development or at regular intervals agreed upon with the client

Answer

ABA Rule 1.4 requires attorneys to keep clients reasonably informed, which typically means updating them at significant milestones and at agreed-upon intervals.

Question 4

What is 'client counseling' in legal practice?

Accepted Answer

Advising a client on their options and the consequences of each course of action

Answer

Client counseling is the process by which an attorney advises the client on their legal options, risks, and consequences to help them make informed decisions.

Question 5

Which of the following best describes 'managing client expectations'?

Accepted Answer

Clearly explaining realistic outcomes and timelines from the start of representation

Answer

Managing client expectations means providing honest, realistic assessments of likely outcomes, timelines, and costs so clients are not surprised.

Law Firm Practice Test

Law Firm Practice Test

Law Firm Client Relations and Communication 2