QUESTION TEXT: Justine: Pellman, Inc. settled the lawsuit out…
QUESTION TYPE: Point At Issue
ARGUMENTS: Justine argues that Pellman settled because it thought it would lose the court case.
Simon argues that Pellman might have settled to avoid legal fees. They might have thought they would win, but that winning would be expensive.
ANALYSIS: Simon makes a good point. Whether or not Pellman would win, a court case would cost a lot of money. So the fact that they settled doesn’t tell us whether they thought they would win.
Simon and Justine disagree about whether the fact that Pellman settled indicates whether Pellman thought it would win or lose.
___________
- Neither of them says whether Pellman would likely have lost. Justine just says Pellman believed it would lose. They might have had a false belief.
- Same as A. We have no idea if Justine thinks Pellman’s beliefs were accurate.
- Justine doesn’t even mention cost-effectiveness.
- Same as C. Justine doesn’t mention legal fees.
- CORRECT. Justine believes this. Simon argues that Pellman might have settled to avoid legal fees, even if they thought they would win.
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