Which of the Following Is True Regarding Punitive Damages in Product

question 8

Multiple Choice

Which of the following is true regarding punitive damages in product liability cases?

• A) They are not available in product liability actions.
• B) The amount of the punitive-damage award is determined by the wealth of the defendant only.
• C) The amount of the punitive-damage award is determined by the maliciousness of the action only.
• D) The amount of the punitive-damage award is determined by the wealth of the defendant and also by the maliciousness of the action.
• E) Punitive damages are meant to compensate the plaintiff for injury and to make the plaintiff whole.

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Definitions:

Economic Rent

Earnings in excess of the minimum required to keep a factor of production in its current use, often derived from unique advantages.

Demand For Land

The economic desire or need for land for various purposes such as agriculture, residential, commercial, or industrial developments.

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.