Read this hypothetical scenario.

A new law has been enacted which states the following: Legal services for representing corporations in corporate takeovers and tax and securities work and for representing individuals in estate planning, domestic relations, real estate transactions or criminal defense matters, will all be evaluated considering the (1) time, (2) mental effort and judgment, and (3) psychological stress involved in delivering each service.

Geographic variations in practice overhead will also be recognized in fee-setting, though historic geographical variations in payments for the work of lawyers will be recognized only to a very limited extent (i.e., a lawyer will be paid for his or her own workas opposed to overheadthe same payment for similar work whether it is performed in Manhattan or in Peoria). No explicit recognition will be given in the fee schedule for experience, skill, or law school class standing of individual practitioners.

Be prepared to discuss the following questions in the Week 2 Live Session: You may use the Journal feature of this assignment to notate thoughts and/or ideas you will share in the Live Session by clicking "Start or edit my journal entry."

• How might such a fee schedule affect access to legal services?
  • The volume of legal services provided?
  • The geographic and specialty distribution of lawyers?
  • The quality of legal services?
  • Innovation in developing new legal theories?
  • Your plans after law school?
  • How hard you study for the final in this class?
• Where does the analogy between this problem and physician insurance payment methodologies break down? How, that is, does the market for physician services differ from the market for legal services?
• How do you think this affects the quality of physician services?