Question

Which of the following is a true statement concerning class action lawsuits? Choose 2 answers.

A. A class action saves judicial resources by providing a convenient and economical means for settling disputes involving a large number of possible plaintiffs.

B. One person can file a class action, even if that person was not personally harmed.

C. Each member of the class must have the identical harm to share in a settlement award.

D. One party harmed by a company files a lawsuit on behalf of a large group of unnamed people who have been similarly harmed.

Answer 1

True statements about class action lawsuits are that they save judicial resources by grouping similar claims and a class action can be filed by one party on behalf of a large group who have been similarly harmed.

Step-by-step explanation:

Among the choices provided concerning class action lawsuits, the two true statements are:

1. A. A class action saves judicial resources by providing a convenient and economical means for settling disputes involving a large number of possible plaintiffs.
2. D. One party harmed by a company files a lawsuit on behalf of a large group of unnamed people who have been similarly harmed.

Option B is incorrect as one cannot file a class action without being personally harmed. Option C is also incorrect because while the harms must be similar, they need not be identical for class members to share in a settlement award. Class action lawsuits provide a means for those who have been harmed to pool their claims into one lawsuit, which can be more efficient than many separate lawsuits. This mechanism allows individuals to hold companies accountable, especially in cases where the harm may be small individually but is significant when combined.