Future Business Leaders of America (FBLA) Business Law Practice Exam

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Study for the FBLA Business Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Practice this question and more.

What are punitive damages designed to achieve?

Compensate the victim for actual losses
Encourage future business fairness
To punish the wrongdoer
Limit future liabilities

The correct answer is: To punish the wrongdoer

Punitive damages are specifically designed to punish the wrongdoer for their actions and deter others from committing similar offenses in the future. They are not intended to compensate the victim for their losses, which is the purpose of compensatory damages. Instead, punitive damages serve as a form of societal condemnation of particularly egregious behavior, emphasizing that there are consequences for certain wrongful actions. By imposing punitive damages, the legal system aims to discourage not just the offender but also others in society from engaging in similar misconduct, thereby promoting a sense of accountability. This aspect of punitive damages aligns with the broader goals of the legal system to uphold justice and encourage ethical behavior among individuals and organizations. The other options focus on aspects such as compensating victims or influencing future business practices, but these do not capture the primary aim of punitive damages, which is to serve as a punishment for wrongful conduct.