Unformatted text preview: weeks to 2 weeks. How will this affect the probability of trial? Plaintiff's expected reward? 4. Suppose that just prior to trial, Congress passes a law that allocates costs under the British rule rather than the American rule. Will this plaintiff be pleased or not? Explain. 5. Suppose that plaintiff's perceived probability of success at trial is 0, while defendant's perception does not change. If the plaintiff knows this in advance, will the plaintiff still file the lawsuit? If filed, will the case be settled or go to trial, explain? 6. Suppose that both the plaintiff and defendant perceive plaintiff's probability of success at trial to be 0, but both parties are aware that it will cost the defendant $3,000 in legal expenses to do the paper work to convince the judge to throw the case out of court. Will the plaintiff file a law suit? Will the case be settled or go to trial?...
View Full Document
- Spring '08
- The Trial, $10,000, $1,000, $3,000, $2,000