Question $1(2\mathrm{.}5$ points$)$

Plaintiff Penny and Defendant Derrick want to negotiate a settlement of their

dispute, but Penny has already filed her complaint in federal court. Can the parties

still negotiate a settlement?

No$,$ because the parties must negotiate a settlement prior to the complaint being

filed.

Yes, because the parties can negotiate a settlement at any time.

No$,$ because the parties must now wait until the court has decided the case to

decide a settlement.

Yes, because the court has not issued a final decision yet.