Which of the Following Statements Regarding Retainers Is False

question 54

Multiple Choice

Which of the following statements regarding retainers is false?

• A) Before commencing work on a matter for a new client, a lawyer usually requests that a retainer be paid.
• B) Provincial law societies typically restrict the use of retainers to personal injury or product liability cases.
• C) A retainer is deposited into a trust account to the credit of the client.
• D) The lawyer may require the client to "top up" the retainer as funds are withdrawn from the trust account to pay legal bills.
• E) A retainer helps ensure that lawyers will be paid for their legal services.

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Definitions:

Decentralization

The transfer of control and decision-making from a centralized entity to local or individual authorities.

Advantage

A condition or circumstance that puts a company or situation in a favorable or superior position compared to competitors.

Transfer Price

The price at which divisions of a company transact with each other, such as the exchange of supplies or labor between departments.

Market Price

The current price at which an asset or service can be bought or sold.