Which of the Following Statements Refers to Punitive Damages

question 50

Multiple Choice

Which of the following statements refers to punitive damages?

• A) They are damages in excess of compensatory damages that the court awards for the sole purpose of deterring the defendant and others from doing the same act again.
• B) They are damages awarded to the party that is injured by a breach of contract but cannot establish actual damages.
• C) They are damages for nonperformance that are stipulated in a clause in the contract.
• D) They are damages designed to place the non-breaching party in the position that party would have enjoyed had the terms of the contract been performed.

---

Definitions:

Cash Sales

are transactions where payment is made in cash immediately upon the sale of goods or services.

NCI

Non-Controlling Interest; a minority stake in a subsidiary that is not owned or controlled by the parent corporation.

Ownership Interest

The right or stake that an individual or entity has in an asset, often implying a share of the asset's profits or losses.

Subsidiary

A company controlled by another company, often referred to as the parent company, through ownership of a majority of its voting stock.