Which Definition Most Accurately Describes a Conditional Fee Arrangement ('CFA')

question 11

Multiple Choice

Which definition most accurately describes a conditional fee arrangement ('CFA') ?

• A) A CFA enables a lawyer to share the risk of the litigation with the client by offering a number of variations of 'no win, limited, or no fee' arrangements.
• B) A CFA enables clients to select the lawyer who offers them the best option to fund their action.
• C) A CFA is available for all clients in litigation and offers more or less risk free litigation for them.
• D) A CFA enables the solicitor and the client to enter into a business arrangement that ensures the best possible deal for both.

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Definitions:

Habitual Decision Making

The process of making choices that are consistent and routine, often without much thought, typically based on past behaviors and patterns.

Sunk-Cost Fallacy

Misguided reasoning that further investment is warranted on something simply because the resources already invested will otherwise be lost, without regard for future costs and benefits.

Limited Problem Solving

A decision-making process characterized by a consumer engaging in minimal search and deliberation, usually applied to familiar and low-stakes purchases.

Lower-Income

Describes individuals or families that earn significantly less money than the average for their society or community.