Settlement discussions are generally inadmissible to prove liability.

• A. True
• B. False
• C. Only in criminal cases
• D. Only in civil cases

Answer: (A)

Settlement discussions are generally inadmissible to prove liability because the law protects negotiations to encourage settlement. Under Rule 408, evidence of offers to settle or statements made during compromise negotiations about the claim cannot be used to prove liability or the amount of a disputed claim. This keeps the focus on resolving disputes rather than punishing parties for what was said during talks. For example, a statement made in the course of settlement talks that a party would pay a certain amount cannot be admitted at trial to show who was at fault. The rule does allow the evidence to be used for other purposes in some circumstances, such as showing a witness’s bias, but not to establish liability itself. So the statement that settlement discussions are generally inadmissible to prove liability is correct.