Paralegal Advanced Competency Exam (PACE) Practice Exam

What do litigation hold policies aim to accomplish?

1. To archive all case-related documents indefinitely

2. To outline actions when litigation appears likely

3. To inform clients about potential lawsuits

4. To regularize billing processes during disputes

The correct answer is: To outline actions when litigation appears likely

Litigation hold policies are essential tools designed to ensure that relevant evidence is preserved when litigation appears likely or is anticipated. The main purpose of these policies is to prevent the destruction or alteration of documents, records, and other evidence that may be critical to the case. When a litigation hold is enacted, it outlines specific actions and procedures that legal teams and the organization must follow to manage and preserve all potentially relevant information. This proactive approach is crucial in maintaining the integrity of evidence, which can greatly influence the outcome of litigation. The other options do not accurately describe the primary goal of litigation hold policies. For instance, archiving all case-related documents indefinitely does not capture the essence of a litigation hold, which is more focused on preservation during a specific period. Informing clients about potential lawsuits might be part of a broader communication strategy, but it is not the primary aim of litigation hold policies. Similarly, regularizing billing processes during disputes is unrelated to the preservation of evidence and consequently falls outside the scope of what litigation hold policies are meant to accomplish.