That's only one part of the rule, the other part, VIII.D.4.b, says no friendly ship of the same or larger class within 10 hexes. So, if the ship is alone, it will surrender as it has no hope. If not alone, I guess the thought is they have hope (help). Makes sense really. So, Scott has plenty of friendly ships within 10. The wording of the message that says it will surrender is only partially true per the rules. The message should be rewritten to MIGHT surrender, or removed, or some other wording.

A lot of people seem to believe the message and feel cheated. But the gmae is actually working properly. It's just the stupid message.