Suppose a Plaintiff Hires a Lawyer to Represent Her in a Court

question 44

Multiple Choice

Suppose a plaintiff hires a lawyer to represent her in a court case.Under which of the following contracts is efficiency in risk bearing assured?

• A) The lawyer is paid by the hour.
• B) The lawyer receives a share of the settlement.
• C) The lawyer receives a fixed fee.
• D) It is impossible to determine without the degree of risk aversion for each.

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Definitions:

Empiricism

The philosophy that knowledge comes primarily from sensory experience, emphasizing the role of observation and experimentation in science.

Theory

A systematic set of principles or explanation for understanding, predicting, or controlling some aspect of the natural or social world.

Psychometrics

The scientific study of the measurement of human abilities, attitudes, and traits through the development and application of psychological tests.

Psychotherapy

A form of therapy aimed at addressing mental health issues by talking with a psychologist, psychiatrist, or another mental health provider.