Punitive Damages

question 5

Multiple Choice

Punitive damages:

• A) are recoverable only when extreme circumstances justify penalizing the defendant.
• B) are ordinarily available in contract cases.
• C) do not allow plaintiffs to collect damages for injuries such as emotional distress.
• D) are not available if the plaintiff can sue in tort for a bad faith breach.

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Definitions:

Variable Costs

Costs that vary in direct proportion to the level of production or business activity.

Fixed Costs

Costs that do not vary with the level of production or sales, such as salaries, rent, and insurance.

Logistics Department

The division within a company that is responsible for the management of the movement of goods and materials.

West Division

A geographical or organizational sector of a company that focuses on operations or markets in the western region.