Nominal Damages Can Be Important Because

question 403

Multiple Choice

Nominal damages can be important because:

• A) they serve as a warning to other who might breach a contract
• B) injured parties must be compensated for all their losses
• C) it is important to punish severely those who breach contracts
• D) proof of breach may be related to other legal issues
• E) none of the other choices are correct

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Definitions:

Property Rights

The legal rights to possess, use, and dispose of assets including real estate, intellectual property, and personal possessions.

Economic System

A particular set of institutional arrangements and a coordinating mechanism for solving the economizing problem; a method of organizing an economy, of which the market system and the command system are the two general types.

Institutional Arrangements

The set of policies, norms, and regulations that shape the behavior of individuals and organizations within a society.

Economizing Problem

The choices necessitated because society’s economic wants for goods and services are unlimited but the resources available to satisfy these wants are limited (scarce).