14 - Introduction to Law Office Administration

Question 1

sole proprietorship

Answer 1

a form of business that does not have a separate legal identity apart from the one person who owns all assets and assumes all debts and liabilities

Question 2

limited liability

Answer 2

restricted liability; liability that can be satisfied only out of business assets, not out of personal assets or a debtor or wrongdoer; protection from personal liability for business debts and claims

Question 3

general practitioner (GP)

Answer 3

a professional who handles many different kinds of cases

Question 4

PI cases

Answer 4

personal injury (tort) cases

Question 5

legal intern

Answer 5

a student in a law office seeking practical experience

Question 6

office sharing

Answer 6

attorneys who are sole practitioners but share the use and overhead costs of an office

Question 7

partnership

Answer 7

a business or other venture jointly owned by two or more persons who share its profits and losses

Question 8

pass-through entity

Answer 8

a partnership, limited-liability entity, or other business whose income tax is paid by the individual partners or owners of the entity rather than by the entity itself

Question 9

partner

Answer 9

one who shares in the profits and losses of a jointly owned business or other venture; partners make the ultimate decisions on how the business should be managed

Question 10

rainmaker

Answer 10

an attorney who brings fee-generating cases into the office due to his or her contacts and/or reputation as a skilled attorney

Question 11

non-equity partner

Answer 11

a special category or partner who does not own the firm in the sense of an equity or capital partner

Question 12

equity partner

Answer 12

a full owner-partner of a law firm

Question 13

draw

Answer 13

a partner’s advance against profits or net income

Question 14

associate

Answer 14

an attorney employee of a partnership who hopes eventually to be promoted to partnership

Question 15

senior associate

Answer 15

an attorney who has been passed over for partner status but who remains at the firm

Question 16

staff attorney

Answer 16

a full-time attorney employee who has no exception of becoming a full partner

Question 17

of counsel

Answer 17

an attorney who is semi-retired or has some other special status in the law firm

Question 18

contract attorney

Answer 18

an attorney hired to work for a relatively short period, usually on specific cases or projects

Question 19

professional corporation (PC)

Answer 19

a corporation consisting of persons performing services that require a professional license

Question 20

limited liability entity

Answer 20

a company or partnership whose owners are taxed like a partnership and have the limited liability of a corporation

Question 21

corporate law department

Answer 21

a law office within a corporation containing salaried attorneys who advise and represent the corporation

Question 22

managing partner

Answer 22

a partner of a law firm who has day-to-day responsibility for the overall management of the firm

Question 23

legal administrator

Answer 23

an individual, usually a non-attorney, who has responsibility for the day-to-day administration of a law office

Question 24

paralegal manager

Answer 24

a paralegal who helps recruit, train, and supervise paralegals in a law office

Question 25

virtual law office

Answer 25

an office in which an attorney provides limited-scope legal services mainly or exclusively through online communication

Question 26

limited-scope representation

Answer 26

less than comprehensive or full representation of a client

Question 27

matter

Answer 27

1 - a client issue; the reason a client hires or consults an attorney 2 - a case before the court

Question 28

new file worksheet

Answer 28

a form used by some law offices that is the source document for the creation of all necessary accounting records that are needed when a law firm begins working on a new client case or matter

Question 29

substantive

Answer 29

non-clerical; requiring legal skills to perform

Question 30

daily timesheet

Answer 30

a form on which timekeepers record how much time they spend on particular client matters

Question 31

non-billable time

Answer 31

time spent on tasks for which clients cannot be asked to pay

Question 32

blended hourly rate

Answer 32

a single hourly rate based on a blend or mix of the rates normally charged by different individuals

Question 33

value billing

Answer 33

a method of charging for legal services based on factors such as the results achieved and the complexity of the case rather than solely on the number of hours spent on the client's case

Question 34

fixed fee

Answer 34

a flat fee for services, regardless of the amount of time needed to complete the task

Question 35

task-based billing

Answer 35

1 - charging a specific amount for each legal task performed | 2 - paying for specifically performed tasks, often identified by using predefined categories or task codes

Question 36

hourly plus fixed fee

Answer 36

an hourly rate charged until the nature and scope of the legal problem is known, at which time a fixed fee is charged for services provided thereafter

Question 37

discounted hourly fee

Answer 37

an hourly or fixed fee that is reduced because of the volume of business the client gives the office

Question 38

incentive billing

Answer 38

a fee that is increased if a designated target is met; an increased fee for achieving an exceptional result

Question 39

retroactive negotiated fee

Answer 39

a client bill that is finalized after the services are rendered

Question 40

expense slip

Answer 40

a form used by an office to indicate that an expense has been incurred for which a client may or may not be billed

Question 41

draft bill

Answer 41

a billing memorandum that states expenses, costs, time spent, and billing rates of attorneys and paralegals working on a particular case or matter

Question 42

write down

Answer 42

deduct an amount from the bill

Question 43

write up

Answer 43

add an amount to the bill

Question 44

valuing the bill

Answer 44

determining whether there should be a write-down, a write-up, or no adjustment of a bill to be sent to the client

Question 45

e-billing

Answer 45

sending out bills electronically

Question 46

record information manager

Answer 46

someone in charge of client files in a large office

Question 47

alphabetical filing system

Answer 47

a method of storing client files in alphabetical order by the surname or organization name of the client

Question 48

numerical filing system

Answer 48

a method of storing client files by numbers or letter-number combinations

Question 49

closed file

Answer 49

the file of a client whose case is no longer active in the office