Which type of damages aims to punish the wrongdoer?

Study for the Business Senior Exam. Use flashcards and multiple-choice questions with hints and explanations. Prepare confidently!

Punitive damages are specifically designed to punish the wrongdoer for their actions and deter others from committing similar acts. Unlike other forms of damages, which primarily focus on compensating the victim for losses incurred, punitive damages are assessed in cases where the defendant’s behavior was particularly egregious, reckless, or malicious.

The purpose of punitive damages goes beyond mere compensation; they serve as a societal condemnation of the defendant's conduct and aim to influence future behavior. Courts award punitive damages not only as a reaction to the harm caused but also to uphold public interests and promote accountability among potential offenders.

In contrast, general damages relate to non-economic losses such as pain and suffering, while compensatory damages are intended to reimburse the injured party for actual losses incurred due to the wrongdoing. Special damages refer to specific, calculable costs resulting directly from the harm, such as medical expenses or lost wages. These types do not serve the goal of punishment and, therefore, do not fit the criteria that define punitive damages.

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