Professional Responsibility Multistate Online Practice Exam

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Which statement best describes contingent fee arrangements in civil matters?
Correct Answer:
Contingent fees are allowed in civil matters only if in writing and comply with other requirements; not allowed in criminal cases.
Explanation:
Contingent fee arrangements can be used in civil matters, but they must be reduced to a writing that the client signs and must meet additional protective requirements. The writing shows exactly how the fee will be calculated, typically as a percentage of the recovery, and explains how expenses are handled and when the fee is payable. This transparency protects the client from unexpected charges and helps prevent disputes about value. In contrast, such fees are not permitted in criminal cases, reflecting policy concerns about fairness and avoiding SAMPLEincentives that could conflict with the client’s interests. So, the best description is that contingent fees are allowed in civil matters only if they’re in writing and comply with other requirements, and they’re not allowed in criminal matters.

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