This is my exam. Answer the following questions completely and exactly how they are stated. One page, double spaced, per a question.

: Final Examinations

Each question below is followed by its answer

1 . Suppose that you are a plaintiff in a case brought against Ted Kennedy for damages in the amount of 250 ,000 . The case arose as a result of injuries and property damage that you incurred in a car accident cause by Ted`s reckless driving . You know that you have a good chance of winning that amount of damages (money ) if the case goes to trial . Ted offers to settle the case for 175 ,000 . Assume that it would take three years

before the court could hear the case . What factors would you consider in deciding this question ? What would your decision be Answer

The factors that must be considered include the cost of the trial the length of the trial , probability of winning the case and expected values of options under given probabilities and even the nature of the case . The offer of 175 ,000 is more than 2 /3 of the amount of damages claimed . The amount to be claimed can go either up or down depending on how the court would really assess the value of damages and the longer the trial , the higher would be the cost of it . Lawyers get paid by the hours of service they spend on the case and there is a cost of money for waiting . But since I know that I have a good chance of winning the cases , the expected value of the claim should now be at least fifty (50 ) of the probability . That amount is roughly at least 125 ,000 three years from now without having to exert more efforts to go to trial . On the basis of that 50 probability of winning the amount of 175 ,000 must be a high amount to start with because that is already present value as compared to future value of 125 ,000 as estimated above . Moreover case facts provide that the three year period is the time within which the court could hear the case , which could mean that there are possibilities of dilatory tactics on the other party 's side and the three year period could even be extended beyond three to reach the finality of decision until there is execution of judgment . The trial process could be a long one considering that this case is a reckless imprudence case where the accused could use many defenses like point to my possible contributory negligence and disproving the value claimed as to the extent of injuries and property damage . The uncertainty is great to for trial hence it is best to go for the bottom line ' Having therefore considered all the factors discussed , I would decide to accept offer of settlement for 175 ,000 which has a greater value than a 300 , 000 that would be possibly received three years from now less other cost as analyzed

2 . Theo Epstein`s supervising attorney , Bill Belicheck , works occasionally as a mediator for family law cases in the local courts Bill...