PrepTest 139, Section 2, Question 26

Difficulty5 of 5
Passage 4Restrictions on contingency-fee agreements
The questionFull text in your LawHub copy of PrepTest 139

In October 1999, the Law Reform Commission of(451 more words not shown)

According to the passage, the(6 more words not shown)

Reading the passage

Keep the commission's recommendations separate from the author's reasons for criticizing them. The commission requires a last resort: other ways to avoid a contingency arrangement must have been exhausted. It also requires the lawyer to be satisfied that the client could not pay without enough damages. The author's later argument about stronger incentives is not one of the commission's eligibility rules.

Working the answers

  • A

    Increased diligence and commitment are benefits the author identifies in defending broader availability. The commission does not make them a condition for using contingency fees.

  • B

    The commission wants to protect clients' compensation, but it does not prohibit these arrangements whenever enormous damages are possible. The stated limits concern payment structure and the client's ability to use another arrangement.

  • C

    Being uncertain that someone can pay is weaker than being satisfied that the person cannot pay. A lawyer who simply does not know the client's financial position has not met the stated requirement.

  • D
    Correct

    If another arrangement is practicable, a contingency agreement is not a last resort. This restates the requirement that all means of avoiding it must first have been exhausted.

  • E

    The report requires an assessment of whether the client could pay without sufficient damages. It does not require the lawyer to be reasonably sure of winning enough damages. Ability to pay without a successful award and likelihood of obtaining one are different questions.

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