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 do what
A)increase attorney fees by charging a percentage of the final settlement
B)reduce the incentive of attorneys to take on class action lawsuits
C)reduce the transaction costs of finding a private solution to an externality
D)regulate attorney fees in class action lawsuits

Question

Quizplus · Accepted Answer

By not requiring interested parties to pay attorney fees directly, the transaction costs of finding a private solution to an externality (in this case, the harm suffered by a group of people) are reduced. This allows for more people to have access to legal representation, which in turn can facilitate the resolution of disputes in a more efficient way.

In Class Action Lawsuits,interested Parties to the Lawsuit Are Not