A Company That Manufactures Cigarettes Has Been Named as the Defendant

question 5

Multiple Choice

A company that manufactures cigarettes has been named as the defendant in a class action.Which of the following statements is TRUE?

• A)The fact that the defendant has been sued in a class action necessarily means that other companies have also been sued in the same action.
• B)The company will likely place notifications in newspapers in an attempt to avoid certification.
• C)The company will probably have to pay costs on a party-and-party or partial indemnity basis if it loses the case.
• D)Because they have sued by way of a class action, the plaintiffs necessarily have hired lawyers on a contingency basis
• E)As long as a class action is the plaintiff's preferred procedure, the court will grant certification, even if the judge believes that some other procedure would be better.

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Definitions:

Coverdell Education

A savings account designed to help families pay for educational expenses, from elementary through post-secondary.

CESA

Coverdell Education Savings Account; a tax-advantaged investment account in the U.S. designed to encourage savings for future education expenses.

AGI

Short for Adjusted Gross Income, which is an individual's total gross income minus specific deductions, used in the U.S. tax system to determine taxable income.

Exclusion Ratio

The portion of an annuity payment that is not subject to income tax, representing a return of investment in the annuity.