Litigation Funding and Group Proceedings: Quiz

Class actions are becoming a popular form of legal action in Victoria - but how much do you know about them? Test your knowledge with this short quiz, then check out our consultation paper on Litigation Funding and Group Proceedings.


1) Which of the following has NOT been the subject of a class action?

a) Soy milk

b) Bank fees

c) Travel sickness pills

d) Red light cameras

e) An online dating site.


2) Mary wants to take legal action against a company that sold a product that damaged her health. She knows four other people who are prepared to join her. Is that enough for a class action? 


3) One of Mary’s friends tells her: ‘My situation isn’t exactly the same as yours, but I’ve got a related claim against the same company.’ Could the friend potentially join Mary’s class action?


4) In a class action, what is a ‘representative plaintiff’?

a) The class member who has the strongest claims 

b) The class member appointed to represent all the class members

c) The class member whose claim is of the highest value

d) The class member who talks most to the media.


5) Most class actions are settled rather than being decided by the court after a trial. True or false?


6) Where a class action results in money being awarded to the class members, who is generally responsible for distributing the money?

a) The representative plaintiff’s lawyers

b) The judge

c) The defendant’s lawyers

d) An independent body.


7) Litigation funders are financial companies that invest in legal actions. Are they regulated in the same way as:

a) Lawyers

b) Real estate agents

c) Bankers

d) Financial advisers

e) None of the above?


8) True or false: the Supreme Court can order that amounts paid to lawyers and litigation funders in class actions be kept confidential.


9) Litigation funders receive a share of any amount that the plaintiff receives in settlement or judgment. What percentage does the litigation funder usually get?

a) 10%-20%

b) 20%-40%

c) 50% or more.


10) If a lawyer takes your case on a ‘no win, no fee’ basis, you won’t have to pay anything if you lose the case. True or false?


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