Chapter 1 Flashcards
What 3 things make a client sophisticated?
(1) well informed about legal processes, costs, and their role in the attorney-client relationship (2) understands the value of legal advice in making informed decisions (3) aware of the significance of evidence and may alter business procedures to ensure proper documentation
Describe the role of the lawyer
(1) to provide legal advice to their client (2) must adhere to client instructions unless they’re illegal or unethical (3) duty to guide clients minimizing risks and ensuring legal compliance
When to hire a lawyer
(1) creating a business or acquisition (2) contracts, financing, etc.
When to self-represent
(1) small claims court matters (2) less complex matters (3) do not self-represent in criminal cases
What are some of a lawyers billing methods?
(1) fixed fees, hourly rates or contingency fees (2) financial retainer
What does the client have to pay out of pocket for when hiring a lawyer?
Disbursements and filing fees
Describe legal aid
(1) available for low-income individuals —varies by province (2) typically not applicable to business matters (3) duty counsel may offer free advice in criminal cases but not representation
Describe the complaint procedure for your lawyer
(1) law societies govern the profession and handle complaints (2) mediation, investigation, and formal hearings (3) complaints are subject to limitation periods for compensation claims
Describe liabilities and risks when it comes to a lawyer
(1) failing to properly inform clients could lead to malpractice claims (2) misleading billing practices could result in disciplinary action (3) inadequate advice or failure to identify conflicts of interest can also result in legal consequences
The elimination of the solicitor-client privilege would significantly undermine the integrity of the Canadian legal system. Tue or False? Explain.
True, solicitor-client privilege ensures full and frank disclosure between clients and their lawyers. The value of a lawyers advice will be greatly reduced if it is based on incomplete information.
What are some examples of decisions that owners of small businesses make?
Legal form of a business, whether to buy an existing business or create a new one. What are relevant laws and regulations affecting the business and what constitutes compliance.
What role does a lawyer play in small business owners making decisions?
Issues regarding purchase or lease of business premises, funding of the business, contracts with employees, suppliers, and customers, intellectual property, and sale of business.
What role has the computer played with respect to the solicitor-client relationship?
Computers allow clients to research easily accessible legal information online, rather than having to consult with a lawyer for every decision.
What is the primary purpose of an initial consultation with a lawyer?
To decide whether or not the lawyer is suitable for you to retain.
Explain three ways lawyers bill their clients which of the three is most commonly used?
(1) Fixed fees - for specific tasks such as will prep, purchasing a home or incorporation. (2) Hourly rate - billing for time spent on the client’s file—most common method of billing in business. (3) Contingency fee - charging a percentage of the amount the client collects.
