ALA CLM Practice Questions - Association of Legal Administrators (ALA) Certified Legal Manager (CLM) Exam - ALA CLM Practice Questions - Association of Legal Administrators (ALA) Certified Legal Manager (CLM) Exam

Question 1

Under ABA Model Rule 1.15, a law firm receiving a $25,000 settlement check payable to the firm in trust for a client must do which of the following FIRST?

Endorse and immediately deposit the entire check into the firm's operating account, then issue a partial disbursement to the client Deposit the entire check into the IOLTA or client trust account and issue disbursements only after the deposit clears Hold the check uncashed until the client signs a release authorizing disbursement Cash the check and pay the client and firm fees in cash to avoid bank float

Correct Answer:

Deposit the entire check into the IOLTA or client trust account and issue disbursements only after the deposit clears

Question 2

A firm has standard fees of $1,000,000 billed and collects $820,000. Worked time at standard rates was $1,250,000. What is the firm's collection realization rate?

65.6 percent 80.0 percent 82.0 percent 152.4 percent

Correct Answer:

82.0 percent

Question 3

Which compensation system distributes partner profits primarily based on each partner's individual origination, billing, and collection metrics?

Pure lockstep based on seniority Modified Hale and Dorr formula weighting team contribution Eat-what-you-kill formula based on individual production Equal partnership shares regardless of performance

Correct Answer:

Eat-what-you-kill formula based on individual production

Question 4

In a three-way reconciliation of an IOLTA account, which three balances must agree at each reconciliation date?

Bank statement balance, firm general ledger trust balance, and aggregate client subsidiary ledger balances Bank statement balance, operating account balance, and unbilled WIP balance Trust balance, accounts receivable balance, and accounts payable balance Bank statement balance, partner capital balance, and IOLTA interest remitted to the state bar

Correct Answer:

Bank statement balance, firm general ledger trust balance, and aggregate client subsidiary ledger balances

Question 5

A litigation partner negotiates a flat fee of $250,000 for a defined matter regardless of hours worked. This pricing approach is BEST classified as which alternative fee arrangement?

Hourly billing with a soft cap Fixed (flat) fee Contingency fee Hold-back retainer

Correct Answer:

Fixed (flat) fee

Question 1

Exam overview

About this Exam

Prepare with the ALA CLM Practice Questions - Association of Legal Administrators (ALA) Certified Legal Manager (CLM) Exam practice quiz. This question bank includes 100 questions covering firm, rule, client, model, and partner. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

More details

Additional Information

ALA CLM Practice Questions - Association of Legal Administrators (ALA) Certified Legal Manager (CLM) Exam

This practice set contains 100 questions from the matching question bank and focuses on firm, rule, client, model, and partner. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

Quiz information

Frequently Asked Questions

The complete question count is available after full access is unlocked.

No fixed duration is currently configured for this quiz.

Question explanations are included where they are available in the quiz content, helping you review the reasoning after answering.

Yes. You can retake the practice test again as you continue studying during your available access period.

After your access is confirmed, you can continue into the complete practice exam from this quiz flow.

Unless explicitly stated otherwise, this page provides independent practice material for study and exam preparation and is not the official examination itself.

Keep studying

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

Correct Answer:

About this Exam

Additional Information

ALA CLM Practice Questions - Association of Legal Administrators (ALA) Certified Legal Manager (CLM) Exam

Frequently Asked Questions

Related Questions

ISC2 Certified in Cybersecurity Practice Exam

360 Training Food Manager Practice Exam

Arizona Assisted Living Manager Practice Exam

Arizona CNA Certified Nursing Assistant Practice Exam

Certified Professional Public Buyer (CPPB) Practice Exam

Arizona Legal Document Preparer Practice Exam