Assume a Lawyer Signs a Contingency Fee Contract with a Plaintiff.The

question 57

Multiple Choice

Assume a lawyer signs a contingency fee contract with a plaintiff.The case ends up settling for $1 million,of which the plaintiff received $800,000.It is obvious this contract was efficient.

• A) True, the plaintiff received some money.
• B) False, it is not clear whether another lawyer would have settled for more.
• C) False, it is not clear whether the plaintiff's lawyer is very smart.
• D) True, the plaintiff and lawyer reached an agreement and both lived up to their end of the agreement.

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Definitions:

Periodic Inventory System

An inventory accounting method where the inventory count and the cost of goods sold are determined at the end of an accounting period.

Merchandise Inventory

Goods or products that a company holds with the intention of selling them to customers for a profit.

Freight In

The cost associated with transporting goods from the supplier to the buyer, which is often added to the purchase cost of inventory.

Income From Operations

The profit generated from a company's regular business activities, excluding deductions of interest and taxes.