Which of the following is an example of punitive damages?

Which of the following is an example of punitive damages?

• A. Compensation for lost wages
• B. A fine exceeding the harm caused
• C. Reimbursement for medical bills
• D. Settlement for emotional distress

Answer: (B)

Punitive damages are intended to punish the wrongdoer and deter similar behavior in the future, rather than to compensate the victim for their losses. The choice indicating a fine exceeding the harm caused directly aligns with this concept, as it goes beyond merely compensating the injured party for what they lost. Instead, it serves as a penalty intended to discourage the wrongful behavior in question. In contrast, compensation for lost wages, reimbursement for medical bills, and settlement for emotional distress are all examples of compensatory damages. These types of damages aim to restore the injured party to the position they were in prior to the harm, addressing specific financial losses related to their injury or suffering. Thus, they do not fulfill the punitive role associated with punitive damages.

Punitive damages are intended to punish the wrongdoer and deter similar behavior in the future, rather than to compensate the victim for their losses. The choice indicating a fine exceeding the harm caused directly aligns with this concept, as it goes beyond merely compensating the injured party for what they lost. Instead, it serves as a penalty intended to discourage the wrongful behavior in question.

In contrast, compensation for lost wages, reimbursement for medical bills, and settlement for emotional distress are all examples of compensatory damages. These types of damages aim to restore the injured party to the position they were in prior to the harm, addressing specific financial losses related to their injury or suffering. Thus, they do not fulfill the punitive role associated with punitive damages.