Justine: Pellman, Inc. settled the lawsuit out of court by paying $1 million. That Pellman settled instead of going t...

Jonathan on September 30, 2020

Bit lost on this one

Hello, Can someone please explain why the answer is E? I absolutely thought it was D

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Ravi on October 1, 2020

@JonathanGliboff, (D) is incorrect because neither Justine nor Simon provides an answer pertaining to what would've happened if they thought legal fees would have been less than settlement.

(E) is correct because Justine says that the settlement shows that they believed they were going to lose. Therefore, if they believed they were going to win, they would not have gone for the settlement. Simon thinks that Pellman may have settled to save money even if they believed they were going to win, so this is the disagreement in the argument.