PrepTest 117, Section 1, Question 5

DetailDifficulty1 of 5
Passage 1Prepaid legal services and their likely long-term effects
The questionFull text in your LawHub copy of PrepTest 117

The Canadian Auto Workers' (CAW) Legal Services Plan,(465 more words not shown)

The passage most strongly suggests(24 more words not shown)

Reading the passage

Referrals. The proponents say a satisfied plan client will bring in other clients who pay the firm's standard rate. Think of a store offering a cheap item to draw customers who also buy other things. The claim is that the later business makes the initial discount worthwhile.

What we’re looking for

That is the proponents' defense. The writer questions whether it will work, but this question asks us to explain their view.

Working the answers

  • A

    Gaining expertise through a varied clientele isn't the benefit the proponents identify. Their argument concerns additional business.

  • B

    They don't promise experienced lawyers higher profits from complex cases. The later discussion of complexity concerns the risk of giving those cases too little time.

  • C
    Correct

    The directors say excellent service brings “three to four other referrals” who aren't subscribers and pay the standard rate. More business at that rate is supposed to offset the lower return on plan work. C connects the two parts of their explanation.

  • D

    Attracting someone who wouldn't otherwise use legal services isn't necessarily taking a client away from an established firm. The proponents don't base their defense on that transfer.

  • E

    Downward pressure on fees is a reported concern, not the proponents' explanation of how cooperating lawyers benefit. We also aren't told all fees will match the plan's schedule.

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