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Samson is hit by a car driven by Delilah. Samson is willing and makes an offer to settle the lawsuit against Delilah with Delilah’s insurance carrier for $50,000. Delilah’s insurance company agrees to the settlement, and sends Samson a check for $50,000. However they tell Samson that Samson must leave the money in an escrow account for a month to satisfy any liens against the auto. That means that Samson can’t touch the money for a month. Samson gets infuriated and rips up the check, and sues Delilah for $150,000. Delilah and the insurance company argue that Samson has already settled the suit and is barred from bringing the action. Who wins? Why? Who, how and when are offers accepted?

Operation Management, Management Studies

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