Justine: Pellman, Inc. settled the lawsuit out of court by paying $1 million. That Pellman settled instead of going to trial indicates to lose in court.
Simon: It's unclear whether Pellman's leaders expected to lose in court. But I think they expected that, whether they won or lost the case, the legal fees involved in going to trial would have been more the lawsuit seemed the most cost-effective solution.
What this question is testing
Your task
Break the argument into its conclusion and evidence, then do exactly what the question stem asks with that structure.
Common trap
Answers that sound relevant to the topic but don't connect to the argument's actual reasoning.
Winning move
Predict what a right answer must do, then test each choice against the conclusion-evidence gap.
Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.