Final answer:
The likelihood of an organization facing a lawsuit is not relatively small, as all organizations are at risk of legal challenges. High-profile lawsuits like those involving Firestone/Ford and Katie Holmes illustrate the significant impact litigation can have, and the case of New York Times v. Sullivan lays out specific legal standards for defamation involving public figures.
Step-by-step explanation:
The statement that an organization's likelihood of being sued is relatively small can be considered false. Despite the impression that media attention on lawsuits and damage settlements might give, both large and small organizations face legal risks that can lead to litigation.
Media coverage often highlights sensational cases and the sizeable settlements involved, but this doesn't necessarily reflect the overall risk a company faces of being sued.
Moreover, the impact of such lawsuits can be severe for a business, as seen in the Firestone/Ford case, where tire failures led to accidents, fatalities, and ultimately costly recalls and lawsuits. High-profile defamation cases, such as the one involving Katie Holmes and Star magazine, demonstrate that even allegations can have a significant financial impact on the individuals involved.
Furthermore, public opinion and the actions of media can be influenced by legal standards outlined in landmark cases like New York Times v. Sullivan, which established rigorous criteria for proving malice in defamation suits involving public figures.
Businesses also need to consider the potential for employee complaints that lead to governmental fines or interventions, as well as the varying standards that courts may apply depending on whether the claimant is a private or public figure. The complexity of these considerations highlights the potential for litigation that businesses must be prepared to address.