In class action lawsuits, interested parties to the lawsuit are not required to pay attorney fees directly. This is an example of an attempt to
A)maximize attorney fees.
B)reduce the incentive of attorneys to file class action lawsuits.
C)reduce the transaction costs of finding a private solution to an externality.
D)regulate attorney fees.

Question

Quizplus · Accepted Answer

This arrangement reduces transaction costs by allowing attorneys to be paid from the settlement or judgment, rather than requiring individual plaintiffs to pay upfront, thus facilitating the pursuit of collective legal action.

In Class Action Lawsuits, Interested Parties to the Lawsuit Are