#44 - A -4- A A A A A A A A A Time-35 minutes 27 Questions...

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Time—35 minutes 27 Questions Directions: Each passage in this section is followed by a group of questions to be answered on the basis of what is stated or implied in the passage. For some of the questions, more than one of the choices could conceivably answer the question. However, you are to choose the best answer; that is, the response that most accurately and completely answers the question, and blacken the corresponding space on your answer sheet. The Canadian Auto Workers’ (CAW) Legal Services Plan, designed to give active and retired autoworkers and their families access to totally prepaid or partially reimbursed legal services, has (5) been in operation since late 1985. Plan members have the option of using either the plan’s staff lawyers, whose services are fully covered by the cost of membership in the plan, or an outside lawyer. Outside lawyers, in turn, can either sign up with the plan as a (10) “cooperating lawyer” and accept the CAW’s fee schedule as payment in full, or they can charge a higher fee and collect the balance from the client. Autoworkers appear to have embraced the notion of prepaid legal services: 45 percent of eligible union (15) members were enrolled in the plan by 1988. Moreover, the idea of prepaid legal services has been spreading in Canada. A department store is even offering a plan to holders of its credit card. While many plan members seem to be happy to (20) get reduced-cost legal help, many lawyers are concerned about the plan’s effect on their profession, especially its impact on prices for legal services. Some point out that even though most lawyers have not joined the plan as cooperating lawyers, legal fees (25) in the cities in which the CAW plan operates have been depressed, in some cases to an unpro±table level. The directors of the plan, however, claim that both clients and lawyers bene±t from their arrangement. For while the clients get ready access to (30) reduced-price services, lawyers get professional contact with people who would not otherwise be using legal services, which helps generate even more business for their ±rms. Experience shows, the directors say, that if people are referred to a ±rm and (35) receive excellent service, the ±rm will get three to four other referrals who are not plan subscribers and who would therefore pay the ±rm’s standard rate. But it is unlikely that increased use of such plans will result in long-term client satisfaction or in a (40) substantial increase in pro±ts for law ±rms. Since lawyers with established reputations and client bases can bene±t little, if at all, from participation, the plans function largely as marketing devices for lawyers who have yet to establish themselves. While (45) many of these lawyers are no doubt very able and conscientious, they will tend to have less expertise and to provide less satisfaction to clients. At the same time, the downward pressure on fees will mean that the full-fee referrals that proponents say will come (50) through plan participation may not make up for a
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#44 - A -4- A A A A A A A A A Time-35 minutes 27 Questions...

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