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Single Answer
0Timber Industries recently had a dispute with a customer. During a meeting with their account representative, the customer stood up and declared, "There is no other solution. We will have to take this matter to court." He then left the room. When does Timber Industries have an obligation to begin preserving evidence?
Answer Options
A
Immediately
B
Upon receipt of a notice of litigation from opposing attorneys
C
Upon receipt of a subpoena
D
Upon receipt of a court order
Correct Answer: A
Explanation
Companies have an obligation to preserve evidence whenever they believe that the threat of litigation is imminent. The statement made by the customer that "we will have to take this matter to court" is a clear threat of litigation and should trigger the preservation of any related documents and records.