ntiff was injured by medical malpractice and received a jury verdict of $500,000 ($200,000 for medical care costs, $200,000 for lost income, and $100,000 for pain and suffering). All the medical care costs had been paid by plaintiff's health insurance company, but the submission of such evidence was barred at trial. In 1989, this jurisdiction, in response to a perceived crisis in medical malpractice insurance, abolished the collateral source rule. In post-trial motions in the instant case, the Court should: Reduce the judgm

ntiff was injured by medical malpractice and received a jury verdict of $500,000 ($200,000 for medical care costs, $200,000 for lost income, and $100,000 for pain and suffering). All the medical care costs had been paid by plaintiff's health insurance company, but the submission of such evidence was barred at trial. In 1989, this jurisdiction, in response to a perceived crisis in medical malpractice insurance, abolished the collateral source rule. In post-trial motions in the instant case, the Court should: Reduce the judgm

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter3: The Judicial System

Section: Chapter Questions

Problem 2QAP

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On Nov. 5, 2016, a Fudge Corp. truck was in an accident with an auto driven by Paul. Fudge received notice on January 15, 2017 of a lawsuit for P 700,000 damages for personal injuries suffered by Paul . The entity's counsel believed it is probable that Paul will be awarded an estimated amount in the range between P 200,000 and P 450,000 and no amount is a better estimate of potential liability than any other amount because each point in the range is as likely as any other. The 2016 financial statements were issued on March 1, 2017. What amount of loss should be accrued on Dec. 31, 2016?
Sweet Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Sweet will lose the case and that a reasonable estimate of damages to be paid by Sweet is $315,000. In light of this case, Sweet is considering establishing a $103,400 self-insurance allowance. What entry, if any, should Sweet record to recognize this loss contingency?
C has initiated a lawsuit against Agency A for recovery of damages when accidentally one of the vehicles owned by the agency collided with the car then driven by C. The Chief Legal Counsel of the Agency estimates from experience that at December 2015, the entity has a 60% chance of winning the lawsuit and thereby avoiding the payment of damages. Furthermore, the counsel estimates that the agency has 20% chance of being ordered to pay C damages of P100,000 and a 20% chance of being ordered to pay C damages of P10,000. . State whether a contingent liability or contingent asset exists. Explain your answers by stating the criteria of your answers below
C has initiated a lawsuit against Agency A for recovery of damages when accidentally one of the vehicles owned by the agency collided with the car then driven by C. The Chief Legal Counsel of the Agency estimates from experience that at December 2015, the entity has a 60% chance of winning the lawsuit and thereby avoiding the payment of damages. Furthermore, the counsel estimates that the agency has 20% chance of being ordered to pay C damages of P100,000 and a 20% chance of being ordered to pay C damages of P10,00 Use the facts given in No. 1, but this time assumes that on December 31, 2015, the Chief Legal Counsel of Agency A estimates from past experience that the possibility of losing the case filed by C is remote. -State whether a contingent liability or contingent asset exists.-Explain your answers by stating the criteria of your answers below.
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