Fact Pattern 10-1 Polly Buys a New Iron and Uses It for a It

question 34

Multiple Choice

Fact Pattern 10-1
Polly buys a new iron and uses it for a few months without incident. She was surprised, however, when one day the iron gave her a significant shock. She suffered no lasting damages, but did have some pain from the incident. A few weeks later she read in the newspaper that the manufacturer had known for over a year about the iron's propensity to shock users, but had refused to take recall measures. She also read that some users had been severely shocked. Polly was outraged but wondered if she could sue because she really did not have significant injuries.
-Refer to Fact Pattern 10-1.What type of damages would likely give Polly the most significant recovery?

• A) Punitive
• B) Compensatory
• C) Nominal
• D) Benefit of the bargain

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Definitions:

Journal Entry

A record in accounting that notes transactions and changes in financial statements.

Net Pay

The amount of money an employee takes home after all deductions, such as taxes and benefits, are taken out of their gross salary.

FICA Tax

Federal Insurance Contributions Act tax; a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Income Taxes

Federal income taxes are taxes levied by the national government on taxable income of individuals, corporations, trusts, and other legal entities.