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0 tracked cards Civil Procedure

Parties settle a first lawsuit and the court enters a dismissal with prejudice. The settlement agreement says nothing about whether any facts are admitted.
Which statement best describes preclusion in later litigation?

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Every settlement automatically decides all factual issues for future litigation. Issue preclusion applies after every settlement because settlement is the same as actual litigation. A settlement binds all strangers to the agreement. A settlement may have claim-preclusive effect if embodied in a final judgment, but it usually does not support issue preclusion unless the parties clearly intended an issue to be conclusively determined.

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