Client Carl Is Reviewing the Representation Agreement Presented to Him

question 6

Multiple Choice

Client Carl is reviewing the representation agreement presented to him by his new lawyer, Lulu. Lulu's agreement provides that her hourly rate is $240 and her paralegal's rate is $100. The contract further provides that "these rates may be adjusted from time to time without notice to the client." This clause is

• A) illegal because it is an important part of the contract that appears to be in the sole control of the lawyer.
• B) legal, normal, and perfectly fine because it is a clause that many law firms use.
• C) probably fine so long as Lulu does not abuse it.
• D) legal but bad business practice because it may frighten some clients away.

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Definitions:

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments, as reported on a company's cash flow statement.

Net Cash

Net Cash refers to the amount of cash available after accounting for cash inflows and outflows.

Operating Activities

Activities that relate to the company's primary operations, such as sales, delivery of services, and production.

Net Cash

The net cash remaining following the calculation of cash incomes and expenditures.