Appeal Bond
At first, you think this has something to do with bananas, but then you recheck the spelling (not "a peel" bond), and now you think it has something to do with a murder conviction being revisited with new DNA evidence.
Well, it's sorta like that last one--a company loses a lawsuit against them for selling pint plastic bags of glass shards called Bag O' Glass to kindergarteners. Apparently, the courts thought this was a really bad idea. The company lost, and they owe the now-scarred children a million dollars. The firm plans to appeal. In order to avoid shenanigans, however, the court requires the company provide a bond that ensures payment of the judgement if the company loses the appeal.
Like how a regular bond in a criminal case discourages defendants from running from the cops, the appeal bond lowers the chance that the defendant in a civil case will use the appeals process to delay payment. Basically, "you can appeal all you want, but let's see the cash first."
Related or Semi-related Video
Finance: What is Contingent Liability?4 Views
Finance allah shmoop what is contingent liability All right you
know what a liability is right It's a debt it's
a promise you've made that you need to fulfill teo
pay someone and fulfilling it can be done with cash
or ah promise of delivering inventory or after you've sold
the home to the joneses An interesting family with oddly
large foreheads you know delivering good title to the home
to them right So you're fulfilling liability of producing your
home so what's a contingent liability Well think of it
is a call option or a put option on a
security A contingent liability is a derivative of some other
underlying being like another liability Well the most common contingent
liability would be a filed lawsuit that is more than
just an ambulance chasing securities lawyer hoping to get a
quick five hundred grand to go away google might be
willing to pay three billion dollars toe by ring That
wireless doorbell company started by some weirdo contingent upon ring
properly defending its lawsuit from honeywell which claims that they
own the patents on the process while the financial outcome
of that lawsuit is a contingent liability to the company
Ring and the outcome of the joneses moving into town
well is a worldwide dominance and the enslavement of all
human I mean that's what's at stake their people But 00:01:31.39 --> [endTime] not least they keep their front lawn looking nice
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