{"id":7734,"date":"2016-10-05T21:12:47","date_gmt":"2016-10-05T21:12:47","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&#038;p=7734"},"modified":"2024-05-07T16:20:09","modified_gmt":"2024-05-07T16:20:09","slug":"compensatory-and-punitive-damages","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/compensatory-and-punitive-damages\/","title":{"raw":"Compensatory and Punitive Damages","rendered":"Compensatory and Punitive Damages"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Differentiate between compensatory and punitive damages<\/li>\r\n<\/ul>\r\n<\/div>\r\nThe way a court remedies a wrong is by awarding monetary payment, referred to as \u201cdamages.\u201d There are two categories of damages: compensatory and punitive. As the term suggests, compensatory damages are intended to compensate for the wrong and restore the plaintiff to his or her pre-incident position (e.g., physically, economically, or mentally). In contrast, punitive damages are awarded in extreme cases where behavior is considered to be so socially unacceptable that the court needs to make an example of the defendant. In these cases, the court generally awards significant punitive damages intended to punish the defendant and deter similar behavior in the future.\r\n\r\nIn setting compensatory damages, courts are governed by the single recovery principle mentioned previously. Briefly, this principle requires the court to award a single lump sum of money that accounts for past and future expenses, lost wages, and pain and suffering. The latter is based on the court's estimate of lingering impacts, including physical and emotional injury and mental anguish.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/18eb7f0e-105e-46cc-a49f-11ae3ffe9918\r\n\r\n<\/div>\r\nThe following videos also explain compensatory and punitive damages.\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=3704586&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=_y7Yr9BHa9Y&amp;video_target=tpm-plugin-9r2to1f8-_y7Yr9BHa9Y\" width=\"800px\" height=\"520px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nYou can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/CompensatoryDamages_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Compensatory Damages\" (opens in new window)<\/a>\u00a0or the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/CompensatoryDamages_alternative.txt\" target=\"_blank\" rel=\"noopener\">text alternative for \"Compensatory Damages\" (opens in new window)<\/a>.\r\n\r\nClick to view <a href=\"https:\/\/youtu.be\/yC1M283tDhI?si=-DFoRGD0k7b3d0CW\">video, \"What Are Punitive Damages.\"<\/a>\r\nYou can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/WhatArePunitiveDamages_LawInfo_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"What Are Punitive Damages\" (opens in new window)<\/a>.","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Differentiate between compensatory and punitive damages<\/li>\n<\/ul>\n<\/div>\n<p>The way a court remedies a wrong is by awarding monetary payment, referred to as \u201cdamages.\u201d There are two categories of damages: compensatory and punitive. As the term suggests, compensatory damages are intended to compensate for the wrong and restore the plaintiff to his or her pre-incident position (e.g., physically, economically, or mentally). In contrast, punitive damages are awarded in extreme cases where behavior is considered to be so socially unacceptable that the court needs to make an example of the defendant. In these cases, the court generally awards significant punitive damages intended to punish the defendant and deter similar behavior in the future.<\/p>\n<p>In setting compensatory damages, courts are governed by the single recovery principle mentioned previously. Briefly, this principle requires the court to award a single lump sum of money that accounts for past and future expenses, lost wages, and pain and suffering. The latter is based on the court&#8217;s estimate of lingering impacts, including physical and emotional injury and mental anguish.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_18eb7f0e-105e-46cc-a49f-11ae3ffe9918\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/18eb7f0e-105e-46cc-a49f-11ae3ffe9918?iframe_resize_id=assessment_practice_id_18eb7f0e-105e-46cc-a49f-11ae3ffe9918\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>The following videos also explain compensatory and punitive damages.<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=3704586&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=_y7Yr9BHa9Y&amp;video_target=tpm-plugin-9r2to1f8-_y7Yr9BHa9Y\" width=\"800px\" height=\"520px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>You can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/CompensatoryDamages_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Compensatory Damages&#8221; (opens in new window)<\/a>\u00a0or the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/CompensatoryDamages_alternative.txt\" target=\"_blank\" rel=\"noopener\">text alternative for &#8220;Compensatory Damages&#8221; (opens in new window)<\/a>.<\/p>\n<p>Click to view <a href=\"https:\/\/youtu.be\/yC1M283tDhI?si=-DFoRGD0k7b3d0CW\">video, &#8220;What Are Punitive Damages.&#8221;<\/a><br \/>\nYou can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Intro+to+Business\/Transcriptions\/WhatArePunitiveDamages_LawInfo_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;What Are Punitive Damages&#8221; (opens in new window)<\/a>.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-7734\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Compensatory and Punitive Damages. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>What Are Punitive Damages?. <strong>Provided by<\/strong>: LawInfo.com. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/yC1M283tDhI\">https:\/\/youtu.be\/yC1M283tDhI<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube license<\/li><li>Compensatory Damages. <strong>Provided by<\/strong>: lawinfo. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/_y7Yr9BHa9Y\">https:\/\/youtu.be\/_y7Yr9BHa9Y<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube license<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":26,"menu_order":11,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"What Are Punitive Damages?\",\"author\":\"\",\"organization\":\"LawInfo.com\",\"url\":\"https:\/\/youtu.be\/yC1M283tDhI\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube license\"},{\"type\":\"copyrighted_video\",\"description\":\"Compensatory Damages\",\"author\":\"\",\"organization\":\"lawinfo\",\"url\":\"https:\/\/youtu.be\/_y7Yr9BHa9Y\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard 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