RC Passage 1 Explanation
PASSAGE TEXT: The Canadian Auto Workers' (CAW) Legal Services Plan, designed to give active and …
Paragraph Summaries
- The CAW Legal Services Plan gives autoworkers and their families cheaper access to legal services through prepaid coverage. Members can use plan lawyers or outside lawyers who either accept set fees or charge extra. The plan has become popular, suggesting growing interest in prepaid legal services.
- Many clients benefit from lower-cost legal help, but some lawyers worry that these plans reduce legal fees. Plan supporters argue that lawyers also benefit because serving plan members can lead to referrals and new full-paying clients.
- The benefits for lawyers and clients may not last. Prepaid plans mainly attract newer lawyers who need clients, while experienced lawyers gain little from participating. Lower fees may also reduce lawyers’ incentives to spend enough time on cases, potentially lowering the quality of legal services overall.
Analysis
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