What is the primary purpose of punitive damages in legal cases?

Study for the Business Law Test. Use flashcards and multiple choice questions, each equipped with hints and explanations. Prepare for your exam with confidence!

The primary purpose of punitive damages is indeed to punish the defendant for wrongdoing. Unlike compensatory damages, which are intended to reimburse the plaintiff for actual losses suffered, punitive damages serve a different function by aiming to deter the defendant and others from engaging in similar wrongful conduct in the future. They are typically awarded in cases involving egregious behavior, such as fraud, malice, or gross negligence, where the court seeks to express disapproval of the defendant's actions and set a precedent to discourage such behavior.

This deterrent effect not only seeks to penalize the wrongdoer but also serves a broader societal interest, emphasizing the importance of lawful conduct and the consequences of violating legal standards. The focus on punishment rather than mere compensation distinguishes punitive damages from other forms of damages in civil cases.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy