Question: Because litigation is so costly, many firms settle suits that they are quite sure they would win if litigated. It is cheaper to settle for

Because litigation is so costly, many firms settle suits that they are quite sure they would win if litigated. It is cheaper to settle for $10,000 or $50,000 than to consume management time and litigation fees. While it is unethical to bring dubious suits that are largely intended to extract a settlement, is it ethical for firms to settle such cases rather than spend additional resources and defeat such suits?

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Companies treat lawsuits in a costbenefit analysis not from what would provide the greatest good It ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

154-L-B-L-L-E (891).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

If most litigation is a costly form of redistribution, then public policy should discourage it for the sake of economic efficiency. Compare the efficiency of the following restrictions on the market...

If Klupt was so unethical that he would actually destroy physical evidence, why did he suddenly admit the whole scheme?

Is Target's use of this secondary data ethical or unethical in this case? Why? Is there an underlying problem in using secondary data in this case or would it have been better to use primary data?...

Because litigation is so costly, many firms settle suits that they are quite sure they would win if litigated. It is cheaper to settle for $10,000 or $50,000 rather than consume management time and...

Ethics Question Because litigation is so costly, many firms settle suits that they are quite sure they would win if litigated. It is cheaper to settle for $10,000 or $50,000 rather than consume...

ITEM #1 LEARNING FROM THE HEADLINES True to the Learning from the Headlines approach of this course, watch the Part Three Intro Video after you read the short article the video highlights. Notice...

Case Study 2 - Merck and Co., Inc. The case study file is available through MyCourses. Read the case study and exhibits, then prepare your analysis. Your analysis should include your thoughts and...

Alternative Dispute Resolution The Search for Alternatives to Litigation Legislatures have tried to find alternatives to costly litigation. These alternatives are called \"alternative dispute...

i just need to complete the excel Frenchies Signature Assignment Joseph Preimesberger posted on Nov 8, 2021 9:35 AM Edited This is a shortened assignment, so just complete the three Excel tabs given...

Questioner of this thesis Journal of Financial Risk Management, 2020, 9, 190-210 https://www.scirp.org/journal/jfrm ISSN Online: 2167-9541 ISSN Print: 2167-9533 DOI: 10.4236/jfrm.2020.93011 Aug. 19,...

The following information is taken from the records of Cabot Cove Company. At the end of the year, Cabot Cove had only three jobs in process. Selected figures for these three jobs are: Cabot Cove...

Identify key performance indicators for Walmart, including the following: Cash flow from operations, Price-to-earnings ratio, Stock dividends, and the yield, if any, Earnings per share ratio, Revenue...

Explain why water is a liquid at room temperature and methane is agas at room temperature

Precision Tool is analyzing two machines to determine which one it should purchase. The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the...

Charleston Inc. acquired 75% of Savannah Manufacturing on January 4, 2020. During 2020, Charleston sold Savannah $460,000 of goods, which had cost $380,000. Savannah still owned 20% of the goods at...

The following table contains sample salary information collected from a salary survey of 13 accounting jobs according to seniority. Accountant I officers poses less than 2 years of accounting work...

On April 1st, 2019, Julie began work with a law firm, Hover & Hover, LLP as an associate attorney. After 2 years of stellar job performance reviews and of consistently out producing her projected...

Marks Music is a store that buys and sells musical instruments and uses a perpetual inventory system. Transactions for the business are shown below: Nov. 2 Purchased two electric guitars from Fender...

Violence against women In its study When Men Murder Women: An Analysis of 2009 Homicide Data, 2011, the Violence Policy Center (www.vpc.org) reported that 1818 women were murdered by men in 2009. Of...

Danny and Marion Klein were injured when part of a fireworks display went astray and exploded near them. They sued Pyrodyne Corp., the pyrotechnic company that was hired to set up and discharge the...

Professor Wise is teaching a summer seminar in business torts at State University. Several times during the course, he makes copies of relevant sections from business law texts and distributes them...

Was there an acceptance of the offer? Why or why not? Shane Durbin wanted to have a recording studio custom-built in his home. He sent invitations to a number of local contractors to submit bids on...

months and will partially disrupt production. The firm has just completed a $50,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: to be 74% of...

Security F has an expected return of 10.50 percent and a standard deviation of 43.50 percent per year. Security G has an expected return of 15.50 percent and a standard deviation of 62.50 percent per...

Greater risk reduction can be achieved when security returns are A . high B . negatively correlated C . positively correlated D . uncorrelated