Question

Why do most business lobbies seek to limit class action lawsuits when all consumers benefit from an opportunity to receive compensation for harms coming from product defects? (250 words)

Answer 1

Class action suit is a case brought by a group of people against a defendant(i.e.company). It is designed for cases in which other individuals are equally harmed by the actions of the defendant.
Group action lawsuits are necessary if the damages sought by a claimant are too small to be sufficient for individual demands. If claimants file a suit as a party, they will hire a lawyer and get restitution. Group lawsuits often relieve courts from hundreds or thousands of minor cases of hearing burdens.

Some of the reasons for limiting the class action lawsuits are as follows:-

• Claimants can earn a payment that is very low when attorneys are paid significant sums.
• The complicated processes involved take a long time to settle cases.
• Class representatives grant the lead defendant and their counsel power over the action.
• All class leaders are influenced by the standard of their representation. Both members suffer if the lawyer does a bad job.
• Instead of cash, claimants can receive coupons or discounts.

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