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# Jumbotrash Co., the country’s largest waste-disposal company

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Intern
Joined: 24 Sep 2012
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GMAT Date: 09-08-2013
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Jumbotrash Co., the country’s largest waste-disposal company [#permalink]

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03 Oct 2012, 20:46
Jumbotrash Co., the country’s largest waste-disposal company, has been sued by environmental groups who have accused the firm of negligent handling of hazardous waste. The fines and legal fees that have resulted from the legal attacks against Jumbotrash have cost the company substantial amounts of money. Surprisingly, as successful lawsuits against the company have increased in number, the company has grown stronger and more profitable.

Which one of the following, if true, does the most to resolve the apparent paradox?

(A) Although waste-disposal firms merely handle but do not generate toxic waste, these firms have been held legally responsible for environmental damage caused by this waste.

(B) Jumbotrash has made substantial contributions to environmental causes, as have other large waste-disposal companies.

(C) Some of the judgments against Jumbotrash have legally barred it from entering the more profitable areas of the waste-management business.

(D) The example of Jumbotrash’s legal entanglements has driven most of the company’s competitors from the field and deterred potential rivals from entering it.

(E) In cases in which Jumbotrash has been acquitted of charges of negligence, the company has paid more in legal fees than it would have been likely to pay in fines.

Last edited by dentobizz on 12 Nov 2013, 14:23, edited 1 time in total.
edited the Title

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Senior Manager
Joined: 15 Jun 2010
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Schools: IE'14, ISB'14, Kellogg'15
WE 1: 7 Yrs in Automobile (Commercial Vehicle industry)

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04 Oct 2012, 06:00
shahebali wrote:
Jumbotrash Co., the country’s largest waste-disposal company, has been sued by environmental groups who have accused the firm of negligent handling of hazardous waste. The fines and legal fees that have resulted from the legal attacks against Jumbotrash have cost the company substantial amounts of money. Surprisingly, as successful lawsuits against the company have increased in number, the company has grown stronger and more profitable.

Which one of the following, if true, does the most to resolve the apparent paradox?

(A) Although waste-disposal firms merely handle but do not generate toxic waste, these firms have been held legally responsible for environmental damage caused by this waste.

(B) Jumbotrash has made substantial contributions to environmental causes, as have other large waste-disposal companies.

(C) Some of the judgments against Jumbotrash have legally barred it from entering the more profitable areas of the waste-management business.

(D) The example of Jumbotrash’s legal entanglements has driven most of the company’s competitors from the field and deterred potential rivals from entering it.

(E) In cases in which Jumbotrash has been acquitted of charges of negligence, the company has paid more in legal fees than it would have been likely to pay in fines.

IMO D.
D brings out an alternate explanation to resolve the paradox. Since most of the company's rivals were out of the market, Jumbotrash were able to earn more profit despite of the substantial amount of fines.
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