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Should the losing party in a civil lawsuit, such as a discrimination claim or personal injury, always be required to pay the attorney's fees, expenses, and court costs of the prevailing party? Please explain your answer.

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Please see response attached (also presented below), which is also supported with two highly informative articles attached. I hope this helps and take care.

RESPONSE:

Although some of the Conservative party argues in favor of the 'loser-pay' ideology (Olson, 1995), there are many opponents of the loser-pay reforms as well.

Let's take a closer look.

1. Should the losing party in a civil lawsuit, such as a discrimination claim or personal injury, always be required to pay the attorney's fees, expenses, and court costs of the prevailing party? Please explain your answer.

This is the present law in many countries around the world (most in fact), and whether it is a just law or should be or remain this way is a matter of opinion. For example, Olson (1995) argues that America should learn from our European neighbors and presents some compelling arguments supporting the loser-pay notion in civil courts (see some of them presented below). He also argues that it would stop some of the negative implication in the present United States civil courts. He points out the following advantages, which seem reasonable:

· By putting no price tag on the levying of extreme demands, we in this country foster terrorization on matters of substance.
· Defendants are encouraged to think they're betting the company on every case, though the resulting intense resistance makes it grueling to prosecute claims.
· Loser-pays would cool overheated demands, get concessions on the table, and curb the purely tactical use of procedural options.
· The overall terror level in the courts would go down, not up.
· And a narrowed dispute will normally be more cheaply ...

Solution Summary

This solution discusses if the losing party in a civil lawsuit, such as a discrimination claim or personal injury, should always be required to pay the attorney's fees, expenses, and court costs of the prevailing party. Supplemented with two articles that present compelling arguments on both sides of the controversy of who should pay the attorney.

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Prepare the necessary journal entries to record the transactions...

Need help with these questions, would appreciate step by step instructions. Thank You

I4-3:

A company formed on January 1 of the current year and entered into the following transactions:

A. Paid $15,000 for transportation and other expenses for incorporators' meetings.

B. Paid $10,000 attorney fees to form the corporation under state law.

C. Paid $12,000 deposit on the lease of office space.

D. Paid $65,000 to purchase furniture and equipment necessary to begin operations.

E. Paid an inventor $45,000 for his patent on a specialized electrical switch the company will manufacture.

F. Paid $12,000 for initial staff training necessary to begin operations.

Instructions:

Prepare the necessary journal entries to record the above transactions.

I4-4:

During 2006, a company spent $140,000 in research and development costs that resulted in a new product. The new product was patented at a total cost of $14,000 including $3,000 in attorney fees and a $500 patent office filing fee. The patent was expected to have a useful life of 8 years.

In 2007, the company successfully defended a patent infringement lawsuit at a total cost of $8,000.

In 2008, the company determined that other products introduced into the market reduced the useful life of the patent and estimated that the patent would become worthless by the end of 2010.

Instructions:

Prepare all journal entries necessary to properly record all entries related to the product and patent for the years 2006 through 2010.

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