1. Study the CLE article in this issue.    
2. Answer the test questions by marking the appropriate boxes. Each question has only one answer. Photocopies of this answer sheet may be submitted; however, this form should not be enlarged or reduced.    
3. Mail the answer sheet and the $15 testing fee ($20 for non-LACBA members) to:   Los Angeles Lawyer
   MCLE Test
   P.O. Box 55020
   Los Angeles, CA 90055 Make checks payable to Los Angeles Lawyer.    
4. You can also fill in the test form and submit it directly to LACBA by clicking "Submit." To submit your test answers online you will need to pay by credit card. After submitting your answers you will be presented with a screen requesting payment information. This information will be submitted in a secure mode which will allow you to safely transmit your credit card number over the Internet. If you prefer not to pay by credit card, please print this answer sheet and submit your responses by regular mail.    
5. Within six weeks, Los Angeles Lawyer will return your test with the correct answers, a rationale for the correct answers, and a certificate verifying the CLE credit you earned through this self-assessment activity.    
6. For future reference, please retain the CLE test materials returned to you. 

Test Sheet

1. Except for contingency fee arrangements, the fee portion of the billing statements that attorneys present to clients must include:
A. The total amount due.
B. The billing rate of each timekeeper.
C. The basis for the calculation of the bill.
D. A, B, and C.
E. None of the above.

2. In billing statements, only the services of partners must be specified.
True.
False.

3. An attorney may not recover a fee in excess of the amount that was explained to the client and to which the client has consented.
True.
False.

4. In the expense portion of a billing statement, an attorney need not identify the cost and expenses incurred but may bill one lump sum amount without any prior agreement with the client.
True.
False.

5. The test for determining whether a fee charged by an attorney is proper is whether the fee is reasonable.
True.
False.

6. In determining whether a fee charged by an attorney is reasonable, the following factors may be considered:
A. The time and labor required.
B. The novelty and difficulty of the question presented.
C. The skill needed to perform the services.
D. The fee customarily charged in the locality for similar legal services.
E. All of the above.
F. None of the above.

7. In determining whether a fee charged by an attorney is reasonable, 1) the amount of money involved in the matter, 2) the result obtained, 3) the experience and reputation of the attorney, and 4) the ability of the attorney may not be considered.
True.
False.

8. An attorney must disclose to the client if the attorney has a minimum billing time.
True.
False.

9. An attorney must disclose to the client any incremental billing method that the attorney uses in determining the client's bills.
True.
False.

10. When an attorney charges .30 of an hour, the attorney is billing for:
A. 3 minutes.
B. 18 minutes.
C. 15 minutes.
D. 30 minutes.

11. Billing a minimum amount in excess of one-tenth of an hour may substantially increase the fees billed to the client.
True.
False.

12. An attorney may charge a client for the time incurred by an employee of the firm for delivering papers to the opposing counsel and for the time incurred in maintaining the client's file without advising the client in advance that the attorney intends to charge for those services.
True.
False.

13. An attorney may add a surcharge to the actual cost of office lunches in the amount of:
A. 10 percent.
B. 15 percent.
C. No surcharge is appropriate.

14. The attorney may only charge the actual direct cost associated with photocopying plus a reasonable allocation of overhead expenses directly associated with the provision of the service (e.g., the salary of a photocopy machine operator).
True.
False.

15. Even if the attorney and the client have agreed upon an hourly fee arrangement, the attorney's bill may contain a "value added" component if the attorney subjectively believes that the work product is worth more than what the hourly rate would generate.
True.
False.

16. An attorney may bill for work on two or more matters during the same time period without the consent of the clients involved.
True.
False.

17. The responsibility for ensuring that the client understands the attorney's billing procedure and billing rates lies with the client, not the attorney.
True.
False.

18. An attorney may divide a fee with lawyers who are not in the attorney's firm only if the client does not object to the participation of all the lawyers involved.
True.
False.

19. "A fiduciary relation of the very highest character" is an apt description of the attorney-client relationship.
True.
False.

20. Business and Professions Code Section 6148(c) provides that certain types of fee agreements are exempt from Section 6148, including agreements in which the client is a corporation.
True.
False.

Address and Billing: 
After submitting your answers you will be asked to enter your name, address, and payment information on the next screen. Once you have submitted the current form, you will be switched to a secure mode which will allow you to safely transmit your credit card number over the Internet.  

If you do not wish to complete this transaction over the Internet you should print this page and send it to the address listed in Step 3 of the instructions at the top of this page.