Damages: Compensatory, Consequential, Punitive

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Questions and Answers

According to syllabus guidelines, what two elements, excluding the timetable, should a student review to ensure success in this course?

Students should review the textual components of the syllabus, read it multiple times, to understand course requirements and expectations.

Explain the primary difference between actual/compensatory damages and consequential damages, providing a brief example of each.

Compensatory damages directly cover losses like medical bills after an injury, while consequential damages cover indirect losses resulting from the injury, like lost wages due to being unable to work. For example, compensatory damages would cover the cost to fix your car. Consequential damages would cover the money lost from not being able to get to work.

What are punitive damages intended to accomplish, and what characteristic of the defendant's actions typically leads to their being awarded?

Punitive damages are intended to punish the defendant for malicious behavior and deter similar actions. They are typically awarded when the defendant's actions are deemed willful, reckless, or outrageous.

If a company knowingly deceives customers about the length of a product warranty, which type of damages (compensatory, consequential, or punitive) would most likely be sought in a lawsuit, and why?

Punitive damages would most likely be sought because the company's behavior is intentional and outrageous. The goal is to punish them and deter similar deceptive practices. Signup and view all the answers

Why is it impossible to get insurance for punitive damages, and why do punitive damages survive bankruptcy?

Punitive damages are uninsurable because insurance is meant to cover accidental losses, not intentional misconduct that warrants punishment. They survive bankruptcy to ensure wrongdoers cannot escape financial accountability for their egregious actions. Signup and view all the answers

Explain the difference between compensatory and consequential damages in the context of a car accident, where the victim sustains injuries and cannot work for a month.

In the scenario of a car accident, compensatory damages would cover immediate losses directly stemming from the accident. This includes medical expenses, car repair costs, and other direct expenses, and consequential Damages are the result of the accident, such as the loss of wages from being unable to work for a month. Signup and view all the answers

Provide an example where consequential damages might be awarded in addition to compensatory damages.

If someone is injured in an accident and requires childcare because they can no longer care for their children themselves, the cost of childcare could qualify as consequential damages in addition to the compensatory coverage of medical expeneses. Signup and view all the answers

A pharmaceutical company releases a drug without adequately testing its interactions with common medications, resulting in patient harm. Explain whether compensatory, consequential, or punitive damages could each apply, and why.

Compensatory damages would cover the patients medical bills and related care. Consequential damages could cover the victim's lost wages. Because this mistake was malicious due to the company failing to test their drug, punitive damages also apply. They are meant to punish the company and prevent further negligent behavior. Signup and view all the answers

Differentiate between statutory law and common law, providing an example of each. How do these two types of law interact and influence each other in a legal system?

Statutory law is enacted by a legislative body and codified (e.g., environmental protection laws). Common law is derived from judicial decisions and precedents (e.g., contract law). Common law can interpret and supplement statutes. Signup and view all the answers

Explain the concept of 'jurisdiction' in the context of law. What are the key factors that determine whether a state court has jurisdiction over a defendant who resides outside of that state?

Jurisdiction is the authority of a court to hear and decide a case. Factors for out-of-state defendants include minimum contacts with the state, such as doing business or committing a tort there. Signup and view all the answers

Describe the process and purpose of a deposition in a legal case. What kind of information can be gathered during a deposition, and how is it used in court proceedings?

A deposition is an out-of-court testimony taken under oath. It gathers information from witnesses and can be used to impeach testimony or as evidence if the witness is unavailable. Signup and view all the answers

What is the difference between questions of law and questions of fact in a legal proceeding? Who typically resolves each type of question, and how does their resolution impact the outcome of a case?

Questions of law are decided by a judge and involve legal principles, while questions of fact are decided by a jury (or judge in a bench trial) and involve factual evidence. Legal rulings guide the application of facts. Signup and view all the answers

Explain the 'Golden Rule' ethical standard and how it can be applied in business decision-making. Provide an example of a business scenario where the Golden Rule could influence ethical behavior.

The Golden Rule is 'treat others as you would like to be treated.' In business, this means considering how your actions affect stakeholders (employees, customers, etc.) and acting fairly and respectfully. Signup and view all the answers

Describe the 'Social Media Test' as an ethical consideration. How can this test help individuals and businesses make more responsible decisions, and what are its limitations?

The social media test asks if you'd be comfortable with your actions being public on social media. It promotes transparency but doesn't encompass all ethical considerations like privacy or legality. Signup and view all the answers

Explain the concept of 'summary judgment' and its relevance to ethical and legal obligations. Under what circumstances might a court grant a summary judgment, and what impact does it have on a case?

Summary judgment is granted when there's no genuine dispute of material fact, entitling the moving party to judgment as a matter of law. It relates to ethics by preventing unnecessary trials when facts are clear. Signup and view all the answers

Compare and contrast the protections offered by the 5th Amendment and the 14th Amendment of the U.S. Constitution. Which of these rights can be asserted by a business entity, and which are typically reserved for individuals?

The 5th Amendment protects against self-incrimination and ensures due process at the federal level, while the 14th ensures equal protection and due process at the state level. Businesses can assert due process and equal protection. Signup and view all the answers

Flashcards

Compensatory Damages

Money awarded to compensate for a loss or injury due to another's negligence or unlawful conduct.

Consequential Damages

Damages awarded in civil cases to cover losses that occurred as a direct result of the incident, such as loss of wages.

Punitive Damages

Damages awarded to punish a defendant for willful or reckless acts, aiming to deter similar behavior.

Requirements for Compensatory Damages

To receive these, the plaintiff must prove a loss occurred and defendant was negligent, unlawful, and the amount of loss.