The Smiths, an Affluent Family, Own a Hospitality Chain Called

question 8

Multiple Choice

The Smiths, an affluent family, own a hospitality chain called Smith Hotels Inc. When a lawsuit was filed against the hotel for serving stale food to its guests, the managers of the hotel decided to hire a lawyer who practices in an adversary system. How is this situation advantageous to Smith Hotels Inc.?

• A) The system makes it easier for a biased judge to control the outcome of a case.
• B) The wealthy can hire better lawyers as the system does not work when the opposing lawyers are of unequal skill.
• C) The system lays emphasis on the competition to win which discourages overstatement of the truth.
• D) The adversary system resents the idea that truth is best discovered through the presentation of competing ideas.

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Definitions:

Option to Abandon

A strategic financial decision allowing a company to cease an investment or project, thereby limiting its losses.

Initial Cost

The initial expenditure required to acquire an asset or start a project, including the purchase price and setup costs.

Management Decision

A choice made by the leadership of an organization that influences its operations or strategy.

Consumer Demand

The desire of purchasers, consumers, clients, or buyers for a product or service in the marketplace.