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[阅读小分队] 揽瓜阁阅读做题小分队 第121天 律师事务所

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发表于 2021-7-29 05:27:41 | 显示全部楼层 |阅读模式
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Corporate law firms have traditionally billed their clients on an hourly basis. However, in the current economy, it is increasingly common for law firms worldwide to offer clients alternative billing structures. Seeking a competitive advantage, many law firms now earn much of their compensation in the form of an unguaranteed bonus which is paid upon completion of the firm's work and the amount of which depends on the success of that work. The terms of these alternative compensation schemes are documented in engagement agreements that specify the bonus the client will pay the firm given various outcomes of the case. Particularly with first-time clients, a compensation structured on such a bonus can be a highly effective marketing tool, especially if the client is very cautious in selecting legal service providers, a high hourly billing rate is a barrier to client engagement, the firm often loses potential clients to firms with lower hourly rates, or the consequences to the client of a negative outcome are severe.

On the other hand, these bonus-based compensation structures can sometimes hinder law firms' marketing efforts. Sophisticated clients may be wary of firms offering such structures, understanding that the firm may have less incentive to provide independent, objective advice and instead advise the client to take undue risks in the hope of winning a larger bonus payout. Such structures may mislead less sophisticated clients by suggesting that the outcomes of certain cases will necessarily be favorable. A firm's willingness to work for a bonus may even signal to potential clients that a firm is desperate for business. Indeed, law firms with exceptional reputations and a track record of success have little to gain by offering an alternative to the long standing norm of hourly billing.


1. All of the following hypothetical situations exemplify a potential problem noted in the second paragraph EXCEPT which of the following?
a. A law firm's offer of a bonus-based compensation structure leads a client to believe that the success of his or her case is a foregone conclusion.
b. A law firm's offer of a bonus-based compensation structure makes a client suspect that the firm has few existing clients.
c. A law firm's offer of a bonus-based compensation structure makes a client suspect that the firm may give riskier advice than it would if it were working on an hourly basis.
d. A law firm's offer of a bonus-based compensation structure makes a client suspect that the firm is trying to charge more than it would if it were working on an hourly basis.
e. A law firm's offer of a bonus-based compensation structure makes a client suspect that a firm's objectivity may be compromised.


2. The primary purpose of this passage is to
a. justify the popularity of a behavior
b. evaluate the usefulness of a practice
c. demonstrate how to implement a program
d. discuss the ethics of a business activity
e. explain the reasons for pursuing a strategy


3. The passage's description of the issue raised by a bonus-based fee structure for law firms most clearly implies that which of the following is true?
a. Success-based bonuses violate the legal profession's standard of practice.
b. Lawyers working on behalf of a client cannot always determine the outcome of a lawsuit in advance.
c. The dignity of the legal profession is undermined by new legal services that differ from those typically offered in the past.
d. Clients whose cases are not successful cannot be adequately compensated by financial settlements alone.
e. Predicting the cost of legal services is more difficult than predicting the costs of other professional services.


参考答案:
DBB

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