Multiple choice

Exemplary damages are awarded:

  1. When it is considered that an action should never have been bought

  2. When the purpose of the action is merely to establish a right

  3. When it is necessary to compensate the plaintiff

  4. To punish the defendant and to deter him from similar conduct in future

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Exemplary damages (also called punitive damages) are not meant to compensate the plaintiff - that's the purpose of compensatory damages. Instead, they aim to punish the defendant for particularly egregious conduct and deter similar behavior in the future.