What factors could lead to an organization entering into a consent agreement rather than continuing pursuitĀ of a suit in court?

Expert Answers
farouk23 eNotes educator| Certified Educator

A consent agreement in regards to corporate law is basically an agreement between disputing parties that stipulates one of the parties will seize the contested action, which should resolve the basis for the suit. Agreements are negotiated between the contesting parties and authorized by the court with authority over the case. There are many reasons why an organization would choose a consent agreement over continued pursuit of a suit, some of which are:

  1. The financial cost of continued pursuit of the suit
  2. Both sides come to a mutually acceptable agreement on the dispute in question
  3. Brand image is being hurt by the ongoing court case
  4. The case is likely to take a considerable amount of time to resolve