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The paperwork gives them an advantage; however, it is not always the end of the matter. I've seen lawyers take what looks like the most ironclad protection and turn it into putty. It depends on the facts and law of the particular case.

The experiments shown on the film are well known in elementary physics. You are right, it just doesn't make any sense; but that's the way it is. If you're interested, there are quite good layman type books on the subject.