Which of the Following Would Be the Most Likely Effect

Multiple Choice

Which of the following would be the most likely effect of a 75 percent tax on punitive awards by juries?

A) An increase in the number of lawsuits asking for punitive damages
B) A decrease in the number of cases settled out of court
C) An increase in the incentive for plaintiffs to pursue legal action against individuals or businesses who have caused injury due to gross negligence
D) An increase in pretrial settlements since plaintiffs are willing to accept lower settlement amounts that are not taxed