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Multiple Choice

Which of the following is NOT listed as a concern in Block 9 (Explain why defense costs for peripheral defendants may be considerably higher)?

The idea being tested is why defense costs for peripheral defendants can be unusually high. Block 9 highlights practical reasons these defendants end up facing substantial costs: they can be named in suits at little or no cost to the plaintiff, which means they’re pulled into litigation even if they’re not the main target; discovery often occurs late, close to trial, making it hard to get dismissed without incurring large expenses; and they may settle along with others or be exposed to adverse judgments if others settle, increasing their risk and potential costs even when they’re not primarily liable. The statement about having no defense costs because of mutual defense agreements is not listed as a concern, and in reality such agreements do not guarantee zero costs for peripheral defendants.

The idea being tested is why defense costs for peripheral defendants can be unusually high. Block 9 highlights practical reasons these defendants end up facing substantial costs: they can be named in suits at little or no cost to the plaintiff, which means they’re pulled into litigation even if they’re not the main target; discovery often occurs late, close to trial, making it hard to get dismissed without incurring large expenses; and they may settle along with others or be exposed to adverse judgments if others settle, increasing their risk and potential costs even when they’re not primarily liable.

The statement about having no defense costs because of mutual defense agreements is not listed as a concern, and in reality such agreements do not guarantee zero costs for peripheral defendants.